The Auditors Have Audited a Sample with a Standard Deviation

question 39

Multiple Choice

The auditors have audited a sample with a standard deviation of audited values larger than they had originally estimated. In this situation, to maintain the risk of incorrect acceptance at its predetermined level without increasing the size of the sample, which of the following statements is correct?

• A) The adjusted allowance for sampling risk will be smaller than had been planned.
• B) The adjusted allowance for sampling risk will be larger than had been planned.
• C) The risk of incorrect rejection will necessarily decrease.
• D) The size of the population must be decreased.

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Definitions:

Ampere-turns

A unit of magnetomotive force represented by the product of current (in amperes) and the number of turns in a coil, influencing the strength of the magnetic field generated.

Electro-magnetic Field

A physical field produced by electrically charged objects affecting the behavior of charged objects in its vicinity.

Iron Core

A component made of iron within an electromagnetic device, such as a transformer or inductor, used to enhance magnetic flux.

Mutual Induction

The phenomenon where a change in magnetic flux in one coil induces a voltage in an adjacent coil, used in transformers and inductive components.