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 number of deviations found in the sample divided by the total number of transactions tested, expressed as a percentage. In this case, the auditor found two deviations out of 50 transactions tested, which gives a sample rate of deviation of 4%. The other options are not relevant to the information given in the question.

If an Auditor Tested 50 Transactions and Found Two Deviations