Using AICPA sample evaluation tables, determine the conclusion from a statistical sampleof internal controls when a sample of 125 documents indicates five deviations if the tolerablerate of deviation is 5 percent, the expected population deviation rate is 2 percent, and theallowance for sampling risk is 3 percent.a. Accept the evidence as support for assessing a low control risk because the tolerable rateof deviation less the allowance for sampling risk is less than the expected populationdeviation rate.b. Use the evidence to assess a higher control risk than planned because the sample rate ofdeviation plus the allowance for sampling risk exceeds the tolerable rate of deviation.c. Use the evidence to assess a higher control risk than planned because the tolerable rate ofdeviation plus the allowance for sampling risk exceeds the expected population deviationrate.d. Accept the evidence as support for assessing a low control risk because the sample rate ofdeviation plus the allowance for sampling risk exceeds the tolerable rate of deviation.
Using AICPA sample evaluation tables, determine the conclusion from a statistical sample
of internal controls when a sample of 125 documents indicates five deviations if the tolerable
rate of deviation is 5 percent, the expected population deviation rate is 2 percent, and the
allowance for sampling risk is 3 percent.
a. Accept the evidence as support for assessing a low control risk because the tolerable rate
of deviation less the allowance for sampling risk is less than the expected population
deviation rate.
b. Use the evidence to assess a higher control risk than planned because the sample rate of
deviation plus the allowance for sampling risk exceeds the tolerable rate of deviation.
c. Use the evidence to assess a higher control risk than planned because the tolerable rate of
deviation plus the allowance for sampling risk exceeds the expected population deviation
rate.
d. Accept the evidence as support for assessing a low control risk because the sample rate of
deviation plus the allowance for sampling risk exceeds the tolerable rate of deviation.
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