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 the risk of assessing control risk toolow is 5%. Which of the following is true? A. The auditor must increase control risk because the risk of assessing control risk too low is greater than the tolerable deviation rateB. The auditor is likely to increase control risk because the risk of assessing control risk too low is greater than the tolerable deviation rateC. The auditor must increase control risk because the computed upper deviation rate is greaterthan the tolerable deviation rateD. The auditor is likely to increase control risk because the computed upper deviation rate is greater than the tolerable deviation rate

Answer 1

Answer: D. The auditor is likely to increase control risk because the computed upper deviation rate is greater than the tolerable deviation rate

Explanation: For this scenario, the only true option is that, the auditor is likely to increase control risk because the computed upper deviation rate is greater than the tolerable deviation rate.

Attributed sampling states that items being sampled will either or won't possess certain attributes or quantities.