If an Auditor Calculated an Upper Limit Rate of Deviation

question 97

Multiple Choice

If an auditor calculated an upper limit rate of deviation of 5% when the tolerable rate of deviation was 4%,the auditor would conclude that

• A) the population deviation rate is low enough to rely on internal control as planned.
• B) the population deviation rate may be higher than that necessary to rely on internal control as planned.
• C) the control risk can be assessed at planned levels.
• D) the control risk should be assessed at lower levels.

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