What Is an Auditor's Evaluation of a Statistical Sample for Attributes

question 32

Multiple Choice

What is an auditor's evaluation of a statistical sample for attributes when a test of 100 documents results in four exceptions if the tolerable exception rate is 5%, the expected population exception rate is 3%, and the allowance for sampling risk is 2%?

• A) Accept the sample results as support for planned reliance on the control because the tolerable rate less the allowance for sampling risk equals the expected population exception rate.
• B) Modify planned reliance on the control because the sample exception rate plus the allowance for sampling risk exceeds the tolerable rate.
• C) Modify planned reliance on the control because the tolerable rate plus the allowance for sampling risk exceeds the expected population exception rate.
• D) Accept the sample results as support for planned reliance on the control because the sample deviation rate plus the allowance for sampling risk exceeds the tolerable rate.

Recognize offshoring and its effect on a country's economy.

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Identify underemployment and its consequences on the workforce.

Understand the financial behaviors of middle-class Americans.

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Definitions:

Connective Tissue

A type of tissue within the body that supports, binds together or separates other tissues and organs, varying in density and function.

Smooth Muscles

Involuntary muscles found in the walls of internal organs and blood vessels, controlling movements within the body's systems.

Skeletal Muscles

Skeletal muscles are voluntary muscles attached to bones by tendons, responsible for movement of the body by contraction.

Lever Systems

Mechanisms in the body that utilize bones to create movements through the application of force against a fulcrum.