When the SER Exceeds the TER, the Auditor Should Decide

question 34

True/False

When the SER exceeds the TER, the auditor should decide whether to increase sample size or to revise assessed control risk on the basis of cost versus benefit.

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Definitions:

IQ

An intelligence quotient, a measure of a person's cognitive abilities compared to the population, usually determined by standardized tests.

Immutable

Something that is unchangeable or unable to be altered over time.

Fluid Intelligence

The ability to solve new problems, use logic in new situations, and identify patterns without relying on pre-existing knowledge.

Crystallized Intelligence

A form of intelligence that involves the ability to use knowledge, experience, and skills that one has acquired over a lifetime.