If a particular internal control is not followed by the client exactly 6% of the time, and the auditor's tests of that control find three control violations in a sample of 50, the sample is considered to be nonrepresentative.

Question

Quizplus · Accepted Answer

The statement implies that the auditor would consider the sample nonrepresentative if the number of control violations in the sample exceeded the expected rate of noncompliance (6% in this case). However, the sample only has three control violations, which is less than 6% of the sample size (50) and therefore does not necessarily indicate a nonrepresentative sample.

If a Particular Internal Control Is Not Followed by the Client