If an Auditor Calculated an Upper Limit Rate of Deviation

question 65

Multiple Choice

If an auditor calculated an upper limit rate of deviation of 5 percent when the tolerable rate of deviation was 4 percent,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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Definitions:

LSD

Short for Lysergic Acid Diethylamide, LSD is a powerful psychedelic drug known for its psychological effects, including altered thinking processes, perceptions, and awareness of surrounding environments.

Percent

A unit of measure that represents one hundredth of a whole, frequently used to describe proportions or comparisons.

Women

Adult human females, often focused on in studies for their unique health, social, and cultural experiences compared to men.

Twelfth Graders

Students in the final year of secondary education, typically aged 17-18 years.