medium10 pts · first answer countstest-of-controlsaudit-sampling

Too many control deviations

In a test of 60 payment approvals, the auditor finds 3 payments made without approval. The tolerable deviation rate is 4%. What should the auditor conclude?

A.Deviation rate 3%; rely on the controlB.Deviation rate 5%; rely on it anyway, since it is closeC.Deviation rate 5%; the control cannot be relied on as planned, so substantive work must increaseD.Deviation rate 20%; disclaim an opinion

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Too many control deviations

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