CPA · Question 42 · Area III: Performing Procedures
An auditor is using attribute sampling to test a control. The auditor specifies a tolerable deviation rate of 5%, a risk of assessing control risk too low of 5%, and an expected population deviation rate of 1%. The sample size is 93. The auditor finds 1 deviation. The table shows that for 1 deviation in a sample of 93, the upper deviation rate is 4.8%. What is the auditor's conclusion?
Answer options:
The control is not effective because deviations were found.
The control is operating effectively because the upper deviation rate (4.8%) is less than the tolerable deviation rate (5%).
The control is not effective because the sample deviation rate (1.07%) is greater than the expected rate (1%).
The auditor should increase the sample size to be sure.
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