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The Auditor Determines the Tolerable Rate of Deviation Based on the Anticipated

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The auditor determines the tolerable rate of deviation based on the anticipated _____________________ on the client's internal control.


Definitions:

Deposits In Transit

Funds that have been recorded by a company but not yet by its bank, typically because the deposit was made after the bank's cutoff time.

Balance Per Bank

The amount of money a company's records show in its bank account, often reconciled with the bank's records for accuracy.

Balance Per Books

The amount shown in a company's accounting records, as opposed to the actual cash balance or balance reported by a bank.

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