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.

---

Definitions:

Share

To have or use something in common with others; in a business context, it refers to a unit of ownership in a company or financial asset.

Symbolic Aspect

The representation of deeper meanings, ideas, or values through symbols, icons, or behaviors.

Cultural Change

The transformation of a society's cultural patterns, beliefs, and practices over time, often due to influences such as technology, migration, or global communication.

Culture

The set of social behavior, norms, knowledge, beliefs, arts, laws, and customs that characterize a group of people or society.