If the Audit Team Established a Tolerable Rate of Deviation

question 66

Multiple Choice

If the audit team established a tolerable rate of deviation of 5%,an expected population deviation rate of 3%,and desired to control the risk of overreliance to 5%,what sample size would be appropriate in this situation?

• A)132 items.
• B)195 items.
• C)258 items.
• D)361 items.

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Definitions:

Cash Increase

Refers to the rise in cash and cash-equivalent assets within a business or organization.

Cash Decrease

A reduction in the amount of cash a company has on hand, which can result from expenses, purchases, or withdrawals.

Income Statement

The income statement is a financial statement that reports a company's financial performance over a specific accounting period, showing revenue, expenses, and net income or loss.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and stockholders' equity at a specific point in time.