An auditor planning tests of controls specifies a risk of assessing control risk too low of five per cent and a tolerable deviation rate of six per cent and expects one deviation. For these specifications, the planned sample size should be: (Use the following table to determine your answer.)
Number of factors for sampling risks of:

A) 60.
B) 50.
C) 80.
D) Some other amount.

Question

An auditor planning tests of controls specifies a risk of assessing control risk too low of five per cent and a tolerable deviation rate of six per cent and expects one deviation. For these specifications, the planned sample size should be: (Use the following table to determine your answer.)
Number of factors for sampling risks of:

A) 60. 
B) 50. 
C) 80. 
D) Some other amount.

Quizplus · Accepted Answer

According to the table, with a risk of assessing control risk too low of 5% and a tolerable deviation rate of 6%, the appropriate sample size is 80. This means that the auditor should plan to test 80 items in order to ensure a reasonable level of assurance that the control is operating effectively.

An Auditor Planning Tests of Controls Specifies a Risk of Assessing