The Deviation Rate the Auditor Will Permit in the Population

question 110

Multiple Choice

The deviation rate the auditor will permit in the population and still be willing to use the assessed level of control risk established during planning is called the:

• A) tolerable deviation rate (TDR).
• B) sample deviation rate (SDR).
• C) acceptable risk of overreliance (ARO).
• D) estimated population deviation rate.

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Definitions:

Characteristic Adaptation

Patterns of behavior that are developed in response to the environment and are consistent over time and situations.

Basic Tendency

An underlying characteristic or predisposition to respond to the environment in a certain way, often considered stable over time.

Reticular Activating System

A network of nerves in the brainstem that plays a key role in regulating wakefulness, attention, and sleep-wake transitions.

Temperament

A person's or animal's nature, especially as it permanently affects their behavior.