When the Auditors Have Chosen to Test a Control,what Relationship

question 32

Multiple Choice

When the auditors have chosen to test a control,what relationship will the tolerable rate normally have when compared to the expected rate of deviations in the sample?

• A)Exceed.
• B)Equal.
• C)Be less than.
• D)Indefinite.

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Definitions:

Subcontracting

The practice of hiring an external organization to perform some of a company's work, rather than doing it in-house.

Plant Capacity

The maximum output that a manufacturing facility can produce under normal conditions over a certain time period.

Aggregate Planner

A methodology used in manufacturing to determine optimal production levels, inventory levels, and workforce levels, considering various factors over a medium-term horizon.

Inventory

The total amount of goods or materials held in stock by a business or organization.