Exam IIA-CIA-Part1 topic 3 question 92 discussion

Actual exam question from IIA's IIA-CIA-Part1

Question #: 92
Topic #: 3

An engagement manager is reviewing the results of sampling work performed by staff internal auditors. Which interim report statement should immediately give the engagement manager cause for concern about the nature and quality of the sampling procedure?

A. The acceptable risk of assessing control risk too low is 10%, the tolerable deviation rate is 5%, the expected population deviation rate is 1%, sample size is 80 out of a large population.
B. The acceptable risk of assessing control risk too low is 5%, the tolerable deviation rate is 5%, the expected population deviation rate is 5%, the sample size is 1580.
C. The acceptable risk of assessing control risk too low is 5%, the tolerable deviation rate is 5%, the expected population deviation rate is 1%, the confidence expressed is 95%.
D. The acceptable risk of assessing control risk too low is 10%, the tolerable deviation rate is 5%, the true, but unknown population rate is less than 5%, the

Show Suggested Answer

Suggested Answer: B 🗳️

by kang1 at Jan. 16, 2021, 9:01 a.m.

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ShadyB

11 months, 2 weeks ago

The sample size is too much 1,580

upvoted 1 times

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thabash

1 year, 6 months ago

B is correct, i guess because the tolerable deviation rate is 5%, is equal to the expected population deviation rate is 5%

upvoted 3 times

John1237

3 months, 1 week ago

The budgeted deviation rate is fully consumed. In this case, a deviation rate of 5% or more is alarming.

upvoted 2 times

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kang1

1 year, 7 months ago

Pls explain why option B is the correct answer. Option D is incomplete.

upvoted 4 times

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