The Tolerable Deviation Rate in Sampling for Tests of Controls

question 65

Multiple Choice

The tolerable deviation rate in sampling for tests of controls is:

• A)Used to determine the probability of the auditor's conclusion based upon reliance factors.
• B)The probability that the financial statements are not materially in error.
• C)A measure of the reliability of substantive tests.
• D)The rate the auditor will tolerate without modifying the planned assessment of control risk.

---

Definitions:

Esters

Organic compounds derived from carboxylic acids in which the hydrogen of the carboxyl group is replaced by a hydrocarbon group, often responsible for the sweet or fruity aromas and flavors of many fruits and flowers.

Aldehydes

Organic compounds characterized by a carbonyl group bonded to at least one hydrogen atom, making them highly reactive.

Carboxylic Acid Derivative

Compounds obtained by substituting the hydroxyl group in carboxylic acids with other functional groups like halides, amides, or esters.

β-Hydroxybutyronitrile

An organic compound featuring a hydroxyl group (–OH) and a nitrile group (–CN) on a four-carbon chain, positioned beta (β) to each other.