AICPA Exam CPA-Auditing 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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Amalia

28 days 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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I think the answer is A) Expected deviation rate.

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