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:

Interposition

A visual cue in depth perception where one object partially covers another, indicating that the covering object is closer to the observer.

Interposition

A visual cue that helps to convey depth by indicating that one object obscures part of another, suggesting that the obscuring object is closer to the viewer.

Linear Perspective

A technique in drawing and painting that creates the illusion of depth on a flat surface, by converging lines towards a single point.

Texture Gradient

A depth cue in perception, indicating that a surface with a denser texture appears further away, and one with a coarser texture appears closer.