When the Computed Upper Exception Rate (CUER) Is Greater Than

question 115

Multiple Choice

When the computed upper exception rate (CUER) is greater than the tolerable exception rate (TER) , 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 upward.
• D) Write a letter to management which outlines the control deficiencies.

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Definitions:

Allosteric Site

A region on an enzyme that is distinct from the active site and can bind regulatory molecules to change the enzyme's activity.

cAMP

Cyclic adenosine monophosphate, a second messenger important in many biological processes.

Lac Operon

A gene regulatory system found in bacteria and some other organisms that regulates the metabolism of lactose, involving an operon required for the transport and metabolism of lactose.

Cap

In molecular biology, a specially modified nucleotide on the 5’ end of eukaryotic mRNA, important for RNA stability and the initiation of translation.