**About these questions, I'm concerned as to how to properly explain why I believe they are the right ones**

37.) If an audit team examined 100 transactions and found one deviation from an important control procedure, the audit conclusion could be that control risk can be assessed at the associated control risk level when

D. More information about decision criteria is available.

Explain:

38.) If an audit team calculated an ULRD of 5 percent when the tolerable rate of deviation was 4 percent, both at the same risk of over-reliance, control risk should be

B. Increased and substantive procedures should be adjusted accordingly.

Explain:

39.) In which of the following circumstances would the audit team most likely use attributes sampling?

C. Selecting purchase orders for indication of proper authorization

Explain:

40.) Using AICPA sample evaluation tables, what is the conclusion from a statistical sample of internal controls when a sample of 125 documents indicates five deviations if the tolerable rate of deviation is 5 percent, the expected population deviation rate is 2 percent, and the allowance for sampling risk is 3 percent?

B. Use the evidence to assess a higher control risk than planned because the sample rate of deviation plus the allowance for sampling risk exceeds the tolerable rate of deviation.

Explain:

41.) An audit team designed a sample that would provide a 10 percent risk of over-reliance that not more than 7 percent of sales invoices lacked credit approval. From previous audits, the audit team expected that 3 percent of the sample invoices lacked proper approval. From the sample of 90 invoices, 7 were found to lack credit approval. Using AICPA sample evaluation tables, the ULRD was

D. 12.8%

Explain: