In Performing Attributes Sampling,the Auditor Will Conclude That the Control

question 12

Multiple Choice

In performing attributes sampling,the auditor will conclude that the control is functioning as intended if the ______ is less than or equal to______.

• A)Expected population deviation rate; tolerable rate of deviation.
• B)Upper limit rate of deviation; tolerable rate of deviation.
• C)Tolerable rate of deviation; expected population deviation rate.
• D)Tolerable rate of deviation; upper limit rate of deviation.

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Definitions:

Transfer Price

The price at which goods and services are transferred between departments or subsidiaries of the same company.

Cost Price Approach

A pricing methodology where the selling price of a product is determined by adding a markup to its total cost of production or acquisition.

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the benefit (return) of an investment by the cost of the investment.

Invested Assets

Assets or capital that have been allocated or deployed with the expectation of earning a return or profit.