If an Auditor Calculated an Upper Limit Rate of Deviation

question 55

Multiple Choice

If an auditor calculated an upper limit rate of deviation of 5% when the tolerable rate of deviation was 4%,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.

---

Definitions:

Registered

Officially recorded and recognized by authorities or designated organizations.

American Adults

Individuals living in the United States who are legally recognized as adults, usually 18 years or older.

Public Opinion

Public opinion is composed of the values and attitudes of the adult population as a whole. It is expressed mainly in polls and letters to lawmakers and gives politicians a reading of citizen preferences.

Adult Population

The segment of a society comprised of individuals typically aged 18 or older who are considered legally responsible and autonomous.