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Exam AUD topic 1 question 879 discussion

Actual exam question from AICPA's AUD
Question #: 879
Topic #: 1
[All AUD Questions]

Which of the following statements is correct concerning statistical sampling in tests of controls?

  • A. As the population size increases, the sample size should increase proportionately.
  • B. Deviations from specific control activities at a given rate ordinarily result in misstatements at a lower rate.
  • C. There is an inverse relationship between the expected population deviation rate and the sample size.
  • D. In determining tolerable rate, an auditor considers detection risk and the sample size.
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Suggested Answer: B 🗳️
Choice "B" is correct. Deviations from control activities do not necessarily result in misstatements. Therefore, deviations from pertinent control activities at a given rate would ordinarily be expected to result in misstatements at a lower rate.
Choice "A" is incorrect. In tests of controls, population size has virtually no effect on sample size unless the population is small.
Choice "C" is incorrect. There is a direct relationship between expected deviation rate and sample size.
Choice "D" is incorrect. Detection risk and sample size are not factors in determining the tolerable deviation rate in a test of controls. The tolerable rate is simply the maximum rate that the auditor is willing to accept without altering his or her planned level of reliance.
by gemazyni at April 5, 2025, 5:15 p.m.

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