AICPA CPA-Auditing Exam - Topic 2 Question 100 Discussion

Actual exam question for AICPA's CPA-Auditing exam

Question #: 100
Topic #: 2

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:

AExpected deviation rate.

BUpper deviation rate.

CRisk of incorrect acceptance.

DRisk of incorrect rejection.

Show Suggested Answer

Suggested Answer: A

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.

by Willow at Sep 14, 2024, 12:51 PM

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Jannette

3 months ago

Not sure about that, could be the upper deviation rate too.

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Sena

3 months ago

Totally agree with expected deviation rate.

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Cherilyn

3 months ago

Surprised this isn't more straightforward!

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Melissa

4 months ago

I think it's the risk of incorrect acceptance.

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Wynell

4 months ago

Definitely the expected deviation rate!

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Bambi

4 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.

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Claudio

4 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?

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Keshia

4 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.

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Slyvia

5 months 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.

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Bronwyn

5 months 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.

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Jacquline

5 months 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.

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Anna

5 months 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.

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Gregoria

5 months 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.

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Amalia

1 year 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.'

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