If the Tolerable Rate of Deviation Is 6 Percent,the Acceptable

question 43

Multiple Choice

If the tolerable rate of deviation is 6 percent,the acceptable risk of overreliance is 5 percent,and the upper limit rate of deviation is 4.8 percent,which of the following statements is not true?

• A) The probability that the population deviation rate is more than 4.8 percent is 5 percent.
• B) The probability that the population deviation rate is less than or equal to 4.8 percent is 95 percent.
• C) The auditor would initially conclude that the internal control is not functioning as intended.
• D) The auditor has limited the exposure to the risk of overreliance to 5 percent.

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