[shanek327]

Which of the following statements is correct about the sample size in statistical sampling when testing internal controls?

a.

The allowable risk of assessing control risk too low has no effect on the planned sample size.

b.

The auditor should consider the tolerable rate of deviation from the controls being tested in determining sample size.

c.

As the likely rate of deviation decreases, the auditor should increase the planned sample size.

d.

Of all the factors to be considered, the population size has the greatest effect on the sample size.

Explanation

Choice “b” is correct. There is an inverse relationship between the tolerable deviation rate and sample size: as the auditor is willing to accept a greater deviation rate, a smaller sample size can be used.

FAR - 75
AUD - 78
BEC - 82
REG - 77

2 Corinthians 5:21

Our value does not come from our skills and abilities, as good as they may be; it does not come from our GPA, our job, a promotion from that job to a better job, our success on the CPA exam, or anything of the like; but our value comes from the fact that we have a Creator who loves us, cares for us, and desires to help us navigate the rough waters of this life in a way that provides security, hope, and true, everlasting joy while we anticipate the life to come, with Him.

[OnMyWay732]

I think the explanation really sums it up

AUD - July 2014 - 76
REG - August 2014 - 82
FAR - November 2014 - 78
BEC - January 2015 - 81

DONE!!!!

Used Becker online. Who needs a text when you can burn your eyes out staring at the screen for months on end?

"Let me tell you something you already know. The world ain't all sunshine and rainbows. It is a very mean and nasty place and it will beat you to your knees and keep you there permanently if you let it. You, me, or nobody is gonna hit as hard as life. But it ain't how hard you're hit; it's about how hard you can get hit, and keep moving forward. How much you can take, and keep moving forward. That's how winning is done!"

[Anonymous]

ITS ALL ABOUT THE RATE. For example:

If the tolerable “deviation rate” is one wrong for every 10 tests 1/10 =10% error= Tolerable/Acceptable rate.

If you tested 10 and 2 were wrong 2/10 = (20% error) you need more tests to to achieve the acceptable 10% rate.

A little bit of algebra…

2/X=10%

X=20

2/20=10%= Our acceptable rate.

[Anonymous]

Eliminate C and D for obvious reasons.

Eliminate A Because If the test is ineffective no change in sample size will improve an ineffective audit.

[shanek327]

yikes! I guess this is the issue with audit, I totally misread…thanks guys

FAR - 75
AUD - 78
BEC - 82
REG - 77

2 Corinthians 5:21

Our value does not come from our skills and abilities, as good as they may be; it does not come from our GPA, our job, a promotion from that job to a better job, our success on the CPA exam, or anything of the like; but our value comes from the fact that we have a Creator who loves us, cares for us, and desires to help us navigate the rough waters of this life in a way that provides security, hope, and true, everlasting joy while we anticipate the life to come, with Him.

[Author]

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