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To determine the sample size for a test of controls, an auditor should consider the tolerable deviation rate, the allowable risk of assessing control risk too low, and the:
Suggested Answer: A
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Choice 'a' is correct. When determining the sample size for a test of controls, the auditor should consider the expected deviation rate (which is the auditor's best estimate of the deviation rate in the population before the sampling plan is executed), the tolerable deviation rate, and the allowable risk of assessing control risk too low.
Choice 'b' is incorrect. The upper deviation rate is used to evaluate a balance after a sampling plan has been performed, not to determine the sample size for a test of controls.
Choices 'c' and 'd' are incorrect. The risk of incorrect acceptance and risk of incorrect rejection are considered in direct tests of balances (i.e., substantive tests), not in tests of controls.
32 comments · newest first
JA
Jannette
10 months ago
Not sure about that, could be the upper deviation rate too.
SE
Sena
11 months ago
Totally agree with expected deviation rate.
CH
Cherilyn
11 months ago
Surprised this isn't more straightforward!
ME
Melissa
11 months ago
I think it's the risk of incorrect acceptance.
WY
Wynell
11 months ago
Definitely the expected deviation rate!
BA
Bambi
12 months ago
I’m leaning towards the expected deviation rate as the answer. It seems to align with the concepts we covered in our review sessions.
CL
Claudio
12 months ago
I feel like the upper deviation rate could be relevant too, but I’m not confident. We talked about it in relation to sample sizes, right?
KE
Keshia
12 months ago
I remember practicing a question similar to this, and I think the risk of incorrect acceptance was mentioned as a factor. But I can't recall if it was the main one.
SL
Slyvia
1 year ago
I think the expected deviation rate is what we need to consider here, but I'm not entirely sure. It seems to fit with what we discussed in class.
BR
Bronwyn
1 year ago
I'm a little confused on this one. Is the third factor the risk of incorrect acceptance or the risk of incorrect rejection? I'll need to review my notes to be sure.
JA
Jacquline
1 year ago
Okay, I think I've got this. The auditor should consider the tolerable deviation rate, the allowable risk of assessing control risk too low, and the expected deviation rate. I'm pretty confident that's the right answer.
AN
Anna
1 year ago
Hmm, I'm a bit unsure about this one. I know the auditor needs to consider the tolerable deviation rate and the risk of assessing control risk too low, but I'm not sure about the third factor.
GR
Gregoria
1 year ago
This seems like a straightforward question about sample size determination for a test of controls. I'll need to think about the key factors the auditor should consider.
AM
Amalia
2 years ago
Hmm, I'm going to have to say C. The risk of incorrect acceptance is just too important to ignore. It's like the auditor version of 'the risk of spilling coffee on your laptop.'
ST
Starr
2 years ago
D) Risk of incorrect rejection.
LU
Luz
2 years ago
C) Risk of incorrect acceptance.
FL
Fletcher
2 years ago
B) Upper deviation rate.
JO
Johnetta
2 years ago
A) Expected deviation rate.
CL
Clement
2 years ago
A, the expected deviation rate? Come on, that's way too obvious. Where's the challenge in that?
HU
Hubert
2 years ago
D) Risk of incorrect rejection.
SH
Sherron
2 years ago
C) Risk of incorrect acceptance.
FI
Filiberto
2 years ago
B) Upper deviation rate.
LE
Letha
2 years ago
But wouldn't considering the expected deviation rate help in determining the sample size more accurately?
KR
Kristel
2 years ago
Well, this is a tricky one. I'm going to go with B, the upper deviation rate. Gotta cover all the bases, you know?
RO
Rosamond
2 years ago
D seems like the right answer to me. The risk of incorrect rejection is crucial when it comes to sample size for control testing.
DE
Deja
2 years ago
I think it's C. The risk of incorrect acceptance is definitely a key factor in determining the sample size for a test of controls.
MY
Myra
2 years ago
D) Risk of incorrect rejection.
GO
Golda
2 years ago
C) Risk of incorrect acceptance.
RO
Rolland
2 years ago
B) Upper deviation rate.
GL
Glory
2 years ago
A) Expected deviation rate.
JO
Johnson
2 years ago
I disagree, I believe the answer is C) Risk of incorrect acceptance.
LE
Letha
2 years ago
I think the answer is A) Expected deviation rate.