In performing attributes sampling,the auditor will conclude that the control is functioning as intended if the ______ is less than or equal to______.
A)Expected population deviation rate; tolerable rate of deviation.
B)Upper limit rate of deviation; tolerable rate of deviation.
C)Tolerable rate of deviation; expected population deviation rate.
D)Tolerable rate of deviation; upper limit rate of deviation.

Question

Quizplus · Accepted Answer

In attributes sampling, the auditor selects a sample from a population and performs a test to determine whether the control being tested is functioning as intended. Based on the results of the sample, the auditor calculates the upper limit rate of deviation (ULRD) using statistical tables. The auditor compares the ULRD to the tolerable rate of deviation (TRD) set by the auditor. If the ULRD is less than or equal to the TRD, the auditor concludes that the control is functioning as intended. Therefore, option B is the correct answer as it states that the ULRD should be less than or equal to the TRD to conclude that the control is functioning as intended.

In Performing Attributes Sampling,the Auditor Will Conclude That the Control