Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ra Media An auditor performs attribute sampling on a test of a control using statistical methods, the overall population was 1,000,000, the sample size was

ra Media An auditor performs attribute sampling on a test of a control using statistical methods, the overall population was 1,000,000, the sample size was 125, the number of deviations was 2, the allowance for sampling risk was 4%, the expected deviation rate was 2% , the tolerable deviation rate was 5%, and the computed upper deviation rate was 5.6%. What was the auditors likely conclusion about the operating effectiveness of the control tested? O The control was operating effectively. The control was not operating effectively. O The auditor would decrease overall control risk for the audit engagement based on this one test of controls. O The auditor is unable to reach a conclusion about the operating effectiveness of the control.
image text in transcribed

ra Media An auditor performs attribute sampling on a test of a control using statistical methods, the overall population was 1,000,000, the sample size was 125, the number of deviations was 2. the allowance for sampling risk was 4%, the expected deviation rate was 2%, the tolerable deviation rate was 5% and the computed upper deviation rate was 5.6%. What was he auditors likely conclusion about the operating effectiveness of the control tested? The control was operating effectively. The control was not operating effectively. The auditor would decrease overall control risk for the audit engagement based on this one test of controls. The auditor is unable to reach a conclusion about the operating effectiveness of the control

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing and Assurance Services A Systematic Approach

Authors: William Messier, Steven Glover, Douglas Prawitt

9th edition

1308361491, 77862333, 978-1259248290, 9780077862336, 1259162346, 978-1259162343

More Books

Students also viewed these Accounting questions

Question

Where is the position?

Answered: 1 week ago

Question

A 300N F 30% d 2 m Answered: 1 week ago

Answered: 1 week ago

Question

How might interviewers interpret your body language?

Answered: 1 week ago

Question

How do you know when the interviewer wishes to end the interview?

Answered: 1 week ago