In Which of the Following Cases Would the Auditor Be

question 3

Multiple Choice

In which of the following cases would the auditor be most likely to conclude that all of the items in an account under consideration should be examined rather than tested on a sample basis?

• A) Tolerable deviation is large and expected deviation is low.
• B) Tolerable deviation is small and expected deviation is high.
• C) Tolerable deviation is large and expected deviation is high.
• D) Tolerable deviation is small and expected deviation is low.

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Definitions:

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Gainful Employment Rule

A regulation designed to ensure that education programs prepare students for gainful employment in a recognized occupation.

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