In determining the sample size for a test of controls, an auditor should consider the expected population deviation rate, desired confidence level, and the:
A)tolerable deviation rate.
B)risk of incorrect acceptance.
C)nature and cause of deviations.
D)population size.

Question

Quizplus · Accepted Answer

The tolerable deviation rate is a key factor in determining sample size for a test of controls because it represents the maximum rate of deviation from prescribed control procedures that the auditor is willing to accept without altering the assessment of the control risk.

In Determining the Sample Size for a Test of Controls