Which of the Following Statements Is Correct Concerning Statistical Sampling

question 41

Multiple Choice

Which of the following statements is correct concerning statistical sampling in tests of controls?

• A)As the population size increases, the sample size should increase proportionately.
• B)Deviations from specific internal control procedures at a given rate ordinarily result in misstatements at a lower rate.
• C)There is an inverse relationship between the expected population deviation rate and the sample size.
• D)In determining tolerable deviation rate, an auditor considers detection risk and the sample size.

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Definitions:

Authority

The right or power to give orders, make decisions, and enforce obedience, often within a specific context such as governmental, organizational, or familial environments.

Norms

Established standards of behavior or guidelines that are considered acceptable within a certain group or society.

Monopolize Leadership

The act of dominating leadership roles or positions to the exclusion of others.

Traditional Authority

The norm in tribal and feudal societies, involves rulers inheriting authority through family or clan ties. The right of a family or clan to monopolize leadership is widely believed to be derived from the will of a god.