The Exception Rate the Auditor Will Permit in the Population

question 61

Multiple Choice

The exception rate the auditor will permit in the population and still be willing to use the assessed level of control risk is called the

• A)tolerable exception rate.
• B)estimated population exception rate.
• C)acceptable risk of overreliance.
• D)sample exception rate.

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Definitions:

Memory Strategy

Techniques or activities designed to improve the ability to retain and recall information.

Organization

Piaget’s concept of grouping isolated behaviors into a higher-order, more smoothly functioning cognitive system; the grouping or arranging of items into categories.

Explicit Memory

Conscious memory of facts and experiences.

Organization

refers to a structured group of people who work together to achieve a shared goal or objective, often through a defined hierarchy and roles.