To determine the sample size for a test of controls, an auditor should consider the tolerable deviation rate, the desired confidence level, and the:

A. expected population deviation rate.
B. computed upper precision limit.
C. risk of incorrect rejection.
D. risk of assessing control risk too high.


Answer: A

Business

You might also like to view...

Intrinsic satisfaction is derived from rewards such as promotions, salary increases, and sales contests

Indicate whether the statement is true or false

Business

While the total amount of fixed cost changes with the level of production, fixed cost per unit remains constant as volume changes.

Answer the following statement true (T) or false (F)

Business

An investment vehicle that adjusts asset weights over time is an asset allocation mutual fund

Indicate whether the statement is true or false.

Business

For good controls over cash payments, the person who orders goods from a supplier should always be different from the person who approves the payment

Indicate whether the statement is true or false

Business