When the Computed Upper Deviation Rate Is Greater Than the Tolerable

question 34

Multiple Choice

When the computed upper deviation rate is greater than the tolerable deviation rate, it is necessary for the auditor to take specific action. Which of the following courses of action would be most difficult to defend if the auditor is ever subject to review by a court?

• A) Revise and relax the tolerable deviation rate (TDR) or the acceptable risk of assessing control risk too low (ARO).
• B) Write a letter to management.
• C) Expand the sample size.
• D) Revise the assessed control risk.

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