If an Audit Team Examined 100 Transactions and Found One

question 49

Multiple Choice

If an audit team examined 100 transactions and found one deviation from an important control procedure,the audit conclusion could be that control risk can be assessed at the associated control risk level when

• A) The tolerable rate of deviation is 2 percent.
• B) The tolerable rate of deviation is 3 percent.
• C) The tolerable rate of deviation is 4 percent.
• D) More information about decision criteria is available.

---

Definitions:

Market Impact

refers to the effect that the buying or selling of a large quantity of a financial instrument has on the price of that instrument.

Government Program

Initiatives launched by the government aimed at addressing various social, economic, or environmental issues.

Subsidy

A financial contribution granted by the government or a public body to support businesses, lowering the cost of production or services.

Flu Shots

Vaccinations that protect against influenza, often administered annually to mitigate the impact of flu seasons.