Question: The achieved upper deviation limit is 7 percent and the risk of assessing control risk too low is 5 percent. How should the internal auditor

The achieved upper deviation limit is 7 percent and the risk of assessing control risk too low is 5 percent. How should the internal auditor interpret this attribute sampling outcome?
a. There is a 7 percent chance that the deviation rate in the population is less than or equal to 5 percent.
b. There is a 5 percent chance that the deviation rate in the population is less than 7 percent.
c. There is a 5 percent chance that the deviation rate in the population exceeds 7 percent.
d. There is a 95 percent chance that the deviation rate in the population equals 7 percent.

Step by Step Solution

★★★★★

3.49 Rating (152 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The correct answer is b There is a 5 percent chance that the deviation rate in the population ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Internal Auditing Assurance Questions!

Shown in random order is a list of balance sheet items for Maple Valley Farms at September 30, current year. Instructions a. Prepare a balance sheet by using these items and computing the amount for...

Ira Icandoit is a staff auditor in the internal audit function of a small manufacturing company located in western Kansas. Ira recently completed a professional development course on a statistical...

Baker, CPA, was engaged to audit Mill Company's financial statements for the year ended September 30, 20X1. After obtaining an understanding of Mill's internal control structure, Baker decided to...

Question (for Internal Audit and control Class Acct 422): The achieved upper deviation limit is 7 percent and the risk of assessing control risk too low is 5 percent. How should the internal auditor...

the achieved upper deviation limit is 6 percent and the risk of assessing control risk too low is 5 % . How should the auditor interpret this attribute sampling outcome?

Please help with Case 3 only CASES Advanced Seary ples Opty MORTURED FISCAL YEAR DEPARTMENT WHE VENDOR HANE TRANSACTION DATE und Descence wa BUSINESS TAX REGISTRATION GOVERNMENT ACTIVITY # Ascencing...

he randomly selected items for testi months. Ira was relieved when he found only si prescribed controls. One deviation dor's invoice, so Ira called the vendoriss transaction was valid. The phone...

The achieved upper deviation limit is 7% and the risk of assessing control risk too low is 5%. How should the internal auditor interpret this attribute sampling outcome?\ \ \ There is a 5% chance...

5 6 points eBook Print References In performing a test of controls for sales order approvals, the CPAs stipulate a tolerable deviation rate of 8 percent with a risk of assessing control risk too low...

This assignment requires you to investigate ARRIUM LIMITED listed on Austrian Stock Exchange (ASX) in terms of the way it has handled CSR reporting. The academic staff will assignto you an ASX-listed...

Write your analyses of the next two p's (place and price) for the company Apple Inc product/service is iphone smartphone. Your place analysis should discuss distribution channels (how are they...

Write the PowerShell command used to list examples using the Write - Host cmdlet.

1. The legal rules that govern design and construction processes have evolved from which of the following: a. Court interpretation b. Federal, state, and local government statutes c. Specific rules...

How can group cohesiveness be increased? Give specific recommendations.x2

Compare and contrast brainstorming and nominal group technique. Ensure you describe both techniques fully in your answer.

Why is the use of teams in organizations becoming more popular?

Please discuss problems you can see with merchandising income statements.

The following data are taken from the balance sheet at the end of the current year. Determine the (a) working capital, (b) current ratio, and (c) quick ratio. Present figures used in your...

A partnership has the following account balances: Cash, $76,000; Other Assets, $570,000; Liabilities, $258,000; Nixon (50 percent of profits and losses), $180,000; Cleveland (30 percent), $130,000;...