If the Expected Deviation Rate Exceeds the Tolerable Deviation Rate

question 36

Multiple Choice

If the expected deviation rate exceeds the tolerable deviation rate, the auditor is most likely to:

• A)have a large sample size.
• B)set control risk at the maximum without sampling.
• C)set control risk at the minimum without sampling.
• D)pick a lower risk of assessing control risk too low to increase sample size.

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Definitions:

Micro-Motions

Very small, detailed motions that are analyzed to study and improve the efficiency of manual tasks or operations.

Activity Charts

Visual representations that show the sequence and duration of activities involved in a process, project, or operation.

Body Movements

The act of changing the position or posture of the body or any of its parts, often studied in ergonomics to improve human-machine interaction and workplace safety.

Scanlon Plan

A participative management method that focuses on rewarding employees for increases in productivity.