If Auditors Conducting Attributes Sampling Found That the Client Deviated

question 50

Multiple Choice

If auditors conducting attributes sampling found that the client deviated from a prescribed control in nine of the first 10 items examined,the auditor is most likely to

• A) Increase sample size.
• B) Increase the computed upper deviation rate.
• C) Decrease the tolerable deviation rate.
• D) Stop the test and increase control risk.

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Definitions:

Page Number

A number assigned to a specific page in a document or book to facilitate organization and reference.

Journalizing

Journalizing is the process of recording transactions in the company's journal, marking the first step in the accounting cycle by documenting all financial transactions.

Ledger

The principal book or computer file for recording and totaling economic transactions measured in terms of a monetary unit of account by account type.

Journalizing

The act of recording financial transactions in a company's journal, detailing debits and credits, part of the first step in the accounting cycle.