An auditor wants to perform a test of controls for a sensitive control.If she discovers even one deviation,she will reject the control as unacceptable.She is especially concerned about finding a deviation rate of more than 1 percent.Using discovery sampling and the sample evaluation table for 5 percent risk of overreliance,what sample size should she use?
A) 20.
B) 150.
C) 300.
D) 500.

Question

Quizplus · Accepted Answer

The sample evaluation table for 5 percent risk of overreliance shows that if the auditor wants to achieve a maximum deviation rate of 1 percent and a minimum deviation rate of 0.5 percent with a sample size of 300, the sample should be rejected if one or more deviations are found. Therefore, a sample size of 300 would meet the auditor's requirements.

An Auditor Wants to Perform a Test of Controls for a Sensitive