Which of the Following Statements Is Correct Regarding an Audit

question 20

Multiple Choice

Which of the following statements is correct regarding an audit team's documentation requirements for attributes sampling?

• A)The audit team's conclusions do not need to be documented unless they decide to rely on internal control at planned levels.
• B)The audit team should document information regarding the number of deviations and sample deviation rate,but not the allowance for sampling risk.
• C)The audit team's documentation should include information about the control environment,including an assessment of management's integrity.
• D)The audit team's documentation should include information regarding all steps of the sampling process and implications of the conclusions reached on internal control reliance and substantive procedures.

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Definitions:

Unbiased Estimator

A statistical estimator that, on average, accurately reflects the parameter it estimates, meaning its expected value is equal to the true value of the parameter.

Standard Error

A statistical measure that quantifies the amount of variability in the sampling distribution of a statistic, often used in the context of mean or proportion.

Sample Size

The number of observations or data points that form part of a sample taken from a larger population for the purpose of statistical analysis.

Point Estimate

A single value that serves as the best guess or best estimate of a population parameter based on sample data.