What factors influence the determination of the upper limit rate of deviation?
Answer to relevant QuestionsIf the audit team examines a sample of 100 items, finds six deviations, and calculates an upper limit rate of deviation of 10.3 percent, what is the allowance for sampling risk?What are the two sampling risks associated with variables sampling? What types of losses are associated with each of these risks?Define classical variables sampling. How does it provide the audit team evidence as to the fairness of an account balance or class of transactions?Variables sampling methods can be used toestimateIf the _____ is less than the _____ , the audit team would conclude that the account balance is fairly stated. a. Projected misstatement; tolerable misstatement. b. Tolerable misstatement; projected misstatement. c. Upper ...
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