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:

Anxiety

Experiencing uneasiness, tension, or fear because of an event with an unknown conclusion.

Depression

A common but serious mood disorder that affects how a person feels, thinks, and handles daily activities.

Preparedness

The concept in psychology that suggests organisms are innately predisposed to form certain associations or learn particular kinds of behaviors.

Stimuli

External or internal events or occurrences that elicite a response from the sensory system of an organism.