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Auditing Multiple choice question

1. An auditor who uses statistical sampling for attributes in testing internal controls should reduce the planned reliance on a prescribed control when the:

a. Tolerable rate plus the allowance for sampling risk equals the sample rate of deviation

b - Sample rate of deviation plus the allowance for sampling risk equals the tolerable rate

c. Sample rate of deviation is less than the expected rate of

deviation used in planning the sample

d. Tolerable rate less the allowance for sampling risk exceeds the sample rate of deviation

e. Sample rate of deviation plus the allowance for sampling risk exceeds the tolerable rate

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1. An auditor who uses statistical sampling for attributes in testing internal controls should reduce the planned reliance on a prescribed control when the:

a. Tolerable rate plus the allowance for sampling risk equals the sample rate of deviation

b - Sample rate of deviation plus the allowance for ...

Solution Summary

This posting gives a detailed explanation in answering the student's multiple choice question on auditing.

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