In testing payroll transactions, an auditor discovers that four out of a statistical sample of one hundred selected time cards were not signed by the appropriate supervisor. To evaluate the materiality or significance of this control deficiency, the internal auditor should …

Question

Accepted Answer

compute an upper precision limit and compare it with the tolerable rate.

Answer

evaluate the significance of the value of the four time cards in relation to the financial statements.

Answer

request management to assess the significance because they are in the best position to know.

Answer

compare the tolerable deviation rate with the expected deviation rate.

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In testing payroll transactions, an auditor discovers that four out of a statist...

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