In discovery sampling,the desired probability of one occurrence is defined as
A) 1 minus the risk of underreliance.
B) 1 minus the risk of overreliance.
C) The critical rate of occurrence.
D) The population deviation rate.

Question

Quizplus · Accepted Answer

In discovery sampling, the desired probability of one occurrence is defined as 1 minus the risk of overreliance. This means that the auditor wants to ensure that the probability of missing an error or fraud is low, reducing the risk of overreliance on the controls of the system being audited. Therefore, the auditor sets a desired probability of occurrence that considers the level of risk they are willing to accept. Option B best fits this definition.

In Discovery Sampling,the Desired Probability of One Occurrence Is Defined