Which of the Following Represents the Best Description of the Tolerable

question 132

Multiple Choice

Which of the following represents the best description of the tolerable exception rate?

• A) the highest exception rate the auditor will permit in the control being tested and still conclude it is operating effectively
• B) the highest exception rate the auditor expects to find in the population
• C) the number of exceptions found in the sample divided by the sample size
• D) the highest estimated exception rate in a population at a given estimated population exception rate.

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Definitions:

Projection

An estimation or forecast of future outcomes based on current or past data.

HR Estimates

Approximations or forecasts concerning human resources needs, including staffing levels and budgeting for salaries or training.

Human Capital Flow

The change in the stock of human capital over time. Factors that affect the flow of human capital include terminations, promotions, lateral movements, and demotions.

Human Capital Stock

The collective skills, knowledge, and abilities possessed by an organization's workforce considered as an asset or investment.