The Expected Population Deviation Rate Is the Auditor's Best Estimate

question 61

True/False

The expected population deviation rate is the auditor's best estimate of the percentage of transactions processed for which a control is not effectively applied.

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Definitions:

Performance

The action or process of carrying out or accomplishing an action, task, or function.

Properly Payable

Properly payable refers to the condition under which a financial instrument, such as a check, meets all requirements for payment to the rightful party without dispute.

Requirements

Conditions or specifications that must be met or complied with.

Preauthorized Payments

Financial transactions that are scheduled to recur at predetermined intervals, where funds are automatically transferred from an individual's bank account or credit card to pay for services or goods.