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:

Truth Values

The valuation of statements as true or false in logic.

Truth Table

A table used in logic to determine whether a compound statement is true or false under all possible situations.

Atomic Sentences

A type of sentence that contains no logical connectors and represents the simplest form of statement that can be either true or false.

Truth Values

The status of propositions in logic, indicating whether they are true, false, or, in some logics, other values such as "unknown."