Final answer:
An auditor's evaluation of a statistical sample for attributes involves testing a portion of the population to determine if there are any deviations from the desired attributes.
Step-by-step explanation:
An auditor's evaluation of a statistical sample for attributes involves testing a portion of the population to determine if there are any deviations from the desired attributes. In this scenario, the auditor tested 50 documents and found three deviations. The tolerable deviation rate is seven percent, the expected population deviation rate is five percent, and the allowance for sampling risk is two percent.
To evaluate the sample, the auditor compares the actual deviation rate (three deviations out of 50) to the tolerable deviation rate (seven percent). If the actual deviation rate is below the tolerable deviation rate, the auditor may conclude that the controls in place are effective. However, if the actual deviation rate exceeds the tolerable deviation rate, further investigation may be necessary.