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If the Upper Limit Rate of Deviation Exceeds the Tolerable

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Short Answer

If the upper limit rate of deviation exceeds the tolerable rate of deviation,the auditor would ordinarily reduce the reliance on internal control and assess control risk at ___________________ levels.


Definitions:

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations and external investment sources.

Investing Activities

Transactions related to the acquisition or disposal of long-term assets and other investments not included in cash equivalents.

Bonds Payable

Long-term liabilities representing amounts owed by a corporation or government to bondholders, to be repaid at a specified future date.

Receipts

Records of transactions indicating payment made or received.

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