The Tolerable Deviation Rate for Tests of Controls Necessary to Justify

question 36

Multiple Choice

The tolerable deviation rate for tests of controls necessary to justify assessing control risk at less than maximum depends primarily on which of the following?

• A) The assessed level of control risk.
• B) The cause of deviations.
• C) The tolerable deviation rate used in audits of similar clients.
• D) The amount of any identified substantive misstatements.

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Definitions:

Social Conduct

The behavior of individuals in a society, governed by social norms, customs, and laws.

Rule of Law

The principle that all members of a society, including those in government, are equally subject to publicly disclosed legal codes and processes.

Fairness

The quality of making judgments that are free from discrimination, bias, or favoritism, ensuring equal treatment for all.

Justice

The principle of fairness and the moral rightness of actions and laws, often pursued through the judicial system to resolve disputes and enforce laws.