To reach this assumption, the auditor has used a technique known as which of the following?

An auditor identifies three errors in the sample of 25 entries selected for review (a 12 percent error rate). Based on this result, the auditor assumes that approximately 59 of the total population of 492 entries are incorrect.

To reach this assumption, the auditor has used a technique known as which of the following?
A . Variability tolerance.
B . Ratio estimation.
C . Stratification.
D . Acceptance sampling.

View Answer

Answer: B