Problem

The following are descriptions of how key parameters are determined in an attributes sampl...

The following are descriptions of how key parameters are determined in an attributes sampling plan. Using the correct letter, indicate which parameter is most closely associated with the description. Each parameter is associated with only one description.

1. Estimated based on prior audits or a pilot sample of controls

 Expected population deviation rate

 ____

2. Determined after reviewing physical representation, such as number of sales invoices processed during the year

 Population size

 ____

3. Calculated by dividing the number of deviations by the sample size

 Allowance for sampling risk

 ____

4. Calculated by subtracting the sample rate of deviation from the upper limit rate of deviation

 Sample size

 ____

5. Determined based on tolerable rate of deviation, expected population deviation rate, and the risk of overreliance

 Tolerable rate of deviation

 ____

6. Determined based on the sample size, number of deviations noted, and risk of overreliance

 Upper limit rate of deviation

 ____

7. Determined judgmentally by the auditor based on the acceptable level of control risk

 Sample rate of deviation

 ____

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