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:

Fifteenth Century

The time period from the year 1401 to 1500, marking the later Middle Ages and leading into the Renaissance in Europe.

Portuguese

The Portuguese refers to the people of Portugal, a country in southwestern Europe, known for its exploratory achievements, maritime history, and cultural influences across the globe.

Bonds

Financial instruments representing loans made by investors to borrowers, typically governments or corporations, with an agreed-upon return.