When Audit Procedures Have Been Completed for an Attributes Sampling

question 14

Multiple Choice

When audit procedures have been completed for an attributes sampling application, the auditor must generalize from the sample to the population. Which of the following statements would be incorrect regarding this process?

• A) The auditor would use an attributes sampling table to determine the computed upper exception rate.
• B) The computed upper exception rate is the highest exception rate in the population that the auditor is willing to accept.
• C) It would be wrong for the auditor to conclude that the population exception rate is exactly the same as the sample exception rate.
• D) In selecting the table corresponding to the risk of overreliance, it should be the same as the ARACR used for determining the initial sample size.

Appreciate the differences between primary and secondary information and their relevance in research.

Understand the importance of evaluating the sources of information for research credibility.

Comprehend the differences and applications of solicited and unsolicited proposals, including their flexibility and drafting strategies.

Identify the elements of an analytical report, distinguishing between conclusions and recommendations.

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Definitions:

Decomposition Reaction

A chemical reaction in which a single compound breaks down into two or more simpler substances.

Oxidation

Loss of one or more electrons from a molecule.

Dehydration Reaction

A chemical reaction in which two molecules combine to form a larger molecule, with the removal of a water molecule.

Hydrolysis

A process where water splits the bonds within a specific substance through a chemical reaction.