The Tolerable Deviation Rate in Sampling for Tests of Controls

question 65

Multiple Choice

The tolerable deviation rate in sampling for tests of controls is:

• A)Used to determine the probability of the auditor's conclusion based upon reliance factors.
• B)The probability that the financial statements are not materially in error.
• C)A measure of the reliability of substantive tests.
• D)The rate the auditor will tolerate without modifying the planned assessment of control risk.

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Definitions:

Goods and Services

The tangible products and intangible activities produced and offered in an economy for purchase.

Produced Within

Describes goods and services that are created or manufactured within a specific geographic boundary, such as a country or region.

U.S. GDP

The total market value of all final goods and services produced within the United States in a given period, serving as a broad measure of its economic activity.

U.S. GNP

Gross National Product of the United States, representing the total dollar value of all goods and services produced over a specific time period by American citizens and businesses, regardless of where they are located.