If an auditor tested 50 transactions and found two deviations from an important control activity,the auditor could conclude that
A) the tolerable rate is 4%.
B) the critical rate of occurrence is 4%.
C) the sample rate of deviation is 4%.
D) the expected population deviation rate is 4%.

Question

Quizplus · Accepted Answer

The sample rate of deviation is the percentage of deviations found in the sample tested, which in this case is 2 out of 50, or 4%. The other options refer to different rates or expectations, but are not relevant to this specific scenario.

If an Auditor Tested 50 Transactions and Found Two Deviations