Which one of the following BEST describes what the auditor means by the rate of occurrence in the audit sampling plan?
A) the frequency with which a certain characteristic occurs within a population
B) the dollar range within which the true population total can be expected to fall
C) the degree of confidence that the sample is representative of the population
D) the number of errors that can reasonably be expected to be found in a population

Question

Quizplus · Accepted Answer

The rate of occurrence in the audit sampling plan refers to the frequency with which a certain characteristic occurs within a population. For example, if the auditor wants to test the occurrence of a specific control activity, such as requiring two signatures on checks over a certain amount, the rate of occurrence would be the percentage of checks that have the correct signatures out of the total population of checks. This information will be used to determine the appropriate sample size for testing.

Which One of the Following BEST Describes What the Auditor