An auditor who tested 50 transactions and found two deviations from an important control activity could conclude that
A) The tolerable rate is 4%.
B) The critical rate of occurrence is 4%.
C) The sample rate of deviation is 4%.
D) The expected population deviation rate is 4%.

Question

Quizplus · Accepted Answer

The sample rate of deviation is the number of deviations found in the sample divided by the total number of transactions tested. In this case, the sample rate of deviation is 2/50 = 4%.

An Auditor Who Tested 50 Transactions and Found Two Deviations