When the Computed Upper Exception Rate Is Greater Than the Tolerable

question 102

Multiple Choice

When the computed upper exception rate is greater than the tolerable exception rate, it is necessary for the auditor to take specific action.Which of the following courses of action would be most difficult to justify?

• A)Reduce the tolerable exception rate so as to accept the sample results.
• B)Expand the sample size and perform more tests.
• C)Revise the assessed control risk.
• D)Write a letter to management which outlines the control deficiencies.

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Definitions:

Workplace

The physical or virtual location where work is done or where professional duties are carried out.

Moral Judgments

Evaluations or determinations made about actions or decisions based on ethical principles and values.

Right And Wrong

Fundamental ethical principles that dictate the morality of actions, decisions, and behaviors.

Preconventional

A stage in Kohlberg's theory of moral development where behavior is influenced by rewards and punishments.