If the Sample Deviation Rate Is Lower Than the Tolerable

question 16

Multiple Choice

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

• A)reduce 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 C
• G)both B and E
• H)Both C and D

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Definitions:

Chi-square

A statistical test used to compare observed frequencies with expected frequencies for categorical variables to assess the likelihood of an association.

Parametric Statistics

A branch of statistics that assumes data comes from a type of distribution and makes inferences about the parameters of the distribution.

Sample Size

The number of observations or data points used in a study or analysis.

Population

All the possible subjects or cases of interest.