Which of the following statements is correct concerning statistical sampling in tests of controls?
A)As the population size increases, the sample size should increase proportionately.
B)Deviations from specific internal control procedures at a given rate ordinarily result in misstatements at a lower rate.
C)There is an inverse relationship between the expected population deviation rate and the sample size.
D)In determining tolerable deviation rate, an auditor considers detection risk and the sample size.

Question

Quizplus · Accepted Answer

Deviations from specific internal control procedures at a given rate often result in misstatements at a lower rate because not all deviations lead to misstatements.

Which of the Following Statements Is Correct Concerning Statistical Sampling