Which of the following situations would most likely result in the auditor in charge (AIC) recommending that the staff auditor further investigate non-compliant items?
A) A staff auditor conducted a test of 25 non-statistical sample items, selected judgmentally, and 5 are not in compliance with organizational policy.
B) A staff auditor conducted a test of 85 non-statistical sample items, selected randomly, and 5 are not in compliance with organizational policy.
C) Before the staff auditor conducted a test of statistical sample items, the AIC was already aware of underlying control weaknesses.
D) A staff auditor conducted a test of statistical sample items, the results of which fall below the acceptable error rate by less than one percentage point.

Question

Quizplus · Accepted Answer

The AIC would likely recommend further investigation in scenario A because the non-compliance rate is 20% (5 out of 25), which is significant and suggests a potential issue that needs further examination.

Which of the Following Situations Would Most Likely Result in the Auditor