The Audit Team Is Planning to Examine a Sample of Control

question 81

Multiple Choice

The audit team is planning to examine a sample of control policies and procedures.Assume that,based on the intended degree of reliance on internal control,the audit team wishes to control the risk of overreliance to 5% and establishes a tolerable deviation rate of 8%.Based on past audits,the audit team would normally estimate the expected population deviation rate at 2%; however,because of improvements in the client's internal control,they now feel that a rate of 1.25% is appropriate.Which of the following is not true with respect to the impact of the reduction in the expected population deviation rate on sample size?

• A)The reduction in the expected population deviation rate would result in a smaller sample size.
• B)The audit team would likely need to have a reasonable justification for establishing a lower expected population deviation rate.
• C)The resultant sample size assuming the reduction in the expected population deviation rate would be 77 items.
• D)The reduction in the expected population deviation rate would result in the audit team examining 19 fewer items.

Analyze the implications of store layout and design decisions on consumer shopping behavior and sales.

Recognize the role of temporal factors in affecting the shopping experience.

Describe the impact of different retail themes and atmospherics on shopping behavior.

Evaluate the effects of sensory elements (e.g., lighting, music) on the retail environment and consumer perceptions.

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Definitions:

Nutrition

The process by which living organisms receive and metabolize foods necessary for health and growth.

Sun Exposure

The amount of time spent under the sun's ultraviolet rays, which can impact skin health and is a factor in vitamin D synthesis.

Skin Check

A thorough examination of the skin for any abnormalities or signs of diseases such as cancer.

Safe Sun Practices

Guidelines or behaviors aimed at reducing the risk of skin damage and diseases from exposure to the sun's harmful rays.