Question
For an attributes sampling plan, the tolerable deviation rate is 4%, the computed upper deviation rate is 7%, the sample deviation rate is 3%, and
For an attributes sampling plan, the tolerable deviation rate is 4%, the computed upper deviation rate is 7%, the sample deviation rate is 3%, and the risk of assessing control risk too low is 5%. Which of the following is true? and please explain.
a.) The auditor must increase control risk because the risk of assessing control risk too low is greater than the tolerable deviation rate
(b) The auditor is likely to increase control risk because the risk of assessing control risk too low is greater than the tolerable deviation rate
(c) The auditor must increase control risk because the computed upper deviation rate is greater than the tolerable deviation rate
(d) The auditor is likely to increase control risk because the computed upper deviation rate is greater than the tolerable deviation rate
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Audit Planning A Risk Based Approach
Authors: K. H. Spencer Pickett
1st Edition
047169052X, 978-0471690528
