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.

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Definitions:

Accomplishing

The act of achieving a goal or completing a task successfully.

Procedural Justice

The perception of fairness in the processes that lead to outcomes or decisions.

Policy

A deliberate system of principles to guide decisions and achieve rational outcomes, often within an organizational or governmental context.

Negative Inequity

A feeling that occurs when one perceives they are receiving less than they deserve compared to others.