Multiple Choice
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?
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.
Correct Answer:
Verified
Correct Answer:
Verified
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