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If the Audit Assurance Rate Is 95%, Then the Level

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If the audit assurance rate is 95%, then the level of acceptable audit risk is 5%.


Definitions:

Total Fertility Rate

The average number of children a woman is expected to have during her lifetime in a specific population.

Present Value

The present value of a future amount of money or series of cash flows, using a given rate of return.

Market Rate

The prevailing price or cost of products, services, or labor in a competitive marketplace as determined by supply and demand.

Interest

The cost of borrowing money, typically expressed as a percentage rate over a period of time, or the return on investment for savings.

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