The Maximum Rate of Deviation That May Exist in the Operation

question 91

Multiple Choice

The maximum rate of deviation that may exist in the operation of a control policy or procedure before the auditors would reduce reliance on internal control is referred to as:

• A)Acceptable rate of deviation.
• B)Control risk.
• C)Tolerable rate of deviation.
• D)Upper limit rate of deviation.

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Definitions:

Financial Accountants

Professionals specializing in managing and reporting a company's financial transactions, ensuring compliance with accounting principles and regulations.

Stockholders' Approval

Stockholders' approval is the consent given by shareholders for certain business decisions or corporate actions, typically during a vote at a shareholders' meeting.

Financial Accounting Standards Board

An independent organization responsible for establishing accounting and financial reporting standards for companies and non-profit organizations in the United States.

Assets and Liabilities

Assets are resources owned by a business that have economic value, while liabilities are obligations a business owes to others.