If the Sample Deviation Rate Is Higher Than the Tolerable

question 52

Multiple Choice

If the sample deviation rate is higher than the tolerable deviation rate,the auditor will

• A)increase the amount of control testing
• B)assume controls are not working
• C)assume the controls are working
• D)reduce the amount of substantive testing
• E)increase the amount of substantive testing
• F)both A and B
• G)both A and C
• H)Both B and E

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price.

Quantity Sold

The total number of units of a product or service that have been purchased in a given period.

Price Elasticity

A measure of how much the quantity demanded or supplied of a good changes in response to a change in its price.