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Questions and Answers
Which of the following is the purpose of attributes sampling in auditing?
Which of the following is the purpose of attributes sampling in auditing?
- To estimate the extent to which a characteristic exists within a population (correct)
- To compare estimated rate to an allowable rate
- To identify key controls upon which auditors intend to rely
- To determine the objective of sampling
What is a deviation condition in attributes sampling?
What is a deviation condition in attributes sampling?
- A situation in which control is not functioning as intended (correct)
- A characteristic that exists within a population
- A rate at which internal control activities are not functioning as intended
- A key control upon which auditors intend to rely
How is the tolerable rate of deviation determined in attributes sampling?
How is the tolerable rate of deviation determined in attributes sampling?
- Based on the estimated rate of deviation
- Based on the desired level of control risk (correct)
- Based on the population size
- Based on the sampling risk
What is the purpose of establishing the sampling risk in attributes sampling?
What is the purpose of establishing the sampling risk in attributes sampling?
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How is the expected population deviation rate estimated in attributes sampling?
How is the expected population deviation rate estimated in attributes sampling?
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Which of the following best describes attributes sampling in auditing?
Which of the following best describes attributes sampling in auditing?
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What is the purpose of comparing the estimated rate of deviation to the tolerable rate of deviation in attributes sampling?
What is the purpose of comparing the estimated rate of deviation to the tolerable rate of deviation in attributes sampling?
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How is the population defined in attributes sampling?
How is the population defined in attributes sampling?
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What is the risk of overreliance in attributes sampling?
What is the risk of overreliance in attributes sampling?
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How is the expected population deviation rate estimated in attributes sampling?
How is the expected population deviation rate estimated in attributes sampling?
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