When Testing Controls, the Tolerable Error Is

question 36

Multiple Choice

When testing controls, the tolerable error is

• A) the tolerable rate of deviation that an auditor will accept before concluding that a control is effective.
• B) the minimum rate of deviation that an auditor will accept.
• C) the tolerable rate of deviation that an auditor will accept before concluding that a control is ineffective.
• D) the maximum amount of error in an account balance that an auditor will accept before concluding that an account is materially misstated.

---

Definitions:

Free Expression

The right to freely express one's ideas, opinions, and art, protected under many legal systems as a fundamental freedom.

One America

A concept or initiative aimed at promoting unity, understanding, and cooperation among diverse communities within the United States.

Advisory Board

A group of individuals with expertise and experience that provide strategic advice to an organization, typically on a voluntary basis.

Addressing Racism

A process or set of actions aimed at confronting and eliminating racism, discrimination, and prejudice based on race.