18. Using the AES technique, a CPA found two exceptions in a sample of 60 when t

Question

18. Using the AES technique, a CPA found two exceptions in a sample of 60 when the ARO is set at 5%. As a result, the CPA rejects the internal control as being reliable. If the CPA decides to expand the original sample from 60 to 70, then it will (assuming all else stays constant): a. increase the chance of accepting the internal control as reliable. b. decrease the chance of accepting the internal control as reliable. c. neither increase nor decrease the chance of accepting the internal control as reliable. d, increase or decrease the chance ofaccepting the internal control as reliable by 10%.

Explanation / Answer

Ans is Option a.

a. increase the chance of accepting the internal control as reliable

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.