If the Upper Limit Rate of Deviation Exceeds the Tolerable

question 56

Multiple Choice

If the upper limit rate of deviation exceeds the tolerable rate of deviation,the auditor would most likely:

• A)Accept the account balance as fairly stated.
• B)Reject the account balance as fairly stated.
• C)Increase the planned effectiveness of substantive procedures.
• D)Not increase the planned effectiveness of substantive procedures.

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Definitions:

Queue 1

Typically refers to the first in a series of waiting lines or sequences where processes or people await their turn for service.

Customer

An individual or entity that purchases goods or services from a business.

Average Time

The mean value of a set of time measurements, often used to assess performance or efficiency.

Work Station 1

A specific area or desk set up for an individual to perform their job tasks, often equipped with necessary tools and technology.