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:

Real-Life Settings

Environments or situations that occur in the natural course of life, outside of controlled or artificial conditions.

Specific Behaviors

Actions or reactions of an organism or individual, usually in response to the environment, that are distinct and particular.

Necessary Goal

A goal considered essential for a person or entity to achieve specific desired outcomes or fulfill a purpose.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, often considered as a drive or need present in everyone.