**About these questions, I'm concerned about getting a proper explanation to their correct answers.**

Which of the following would not result in the audit team's selecting a larger sample of controls for examination?

B. An increase in the tolerable rate of deviation from 3 percent to 6 percent.

Explain:

Baily Cox, an audit manager, judged that the test of controls of the company's 50,000 purchase transactions should be based on a tolerable rate of deviation of 6 percent, a risk of over-reliance of 5 percent, and an expected population deviation rate of 3 percent. Using AICPA sample size tables, the appropriate sample size in this situation would be

D. 195

Explain:

Francona Madden, an audit manager, considered the control risk assessments listed in the left column of the following table in evaluating A. Cardinals internal control over sales transactions. The sample sizes for the substantive procedures of the customer accounts receivable are shown to the right of each control risk. What risk of overreliance (ROO) could be assigned for tests of controls at each control risk level?

D. From top to bottom: 1 percent, 5 percent, 10 percent.

Explain:

35.) Assume that Dylan Lee found two deviations in a sample of 90 transactions. Using AICPA sample evaluation tables, the upper limit rate of deviation at a 5 percent risk of overreliance is

D. 6.9%

Explain:

36.) The interpretation of the upper limit rate of deviation in an attributes sampling application is

A. The estimated rate of deviation in the population with probability equal to the risk of over-reliance that the population deviation rate is higher.

Explain: