Which of the Following Represents the Best Description of the Tolerable

question 26

Multiple Choice

Which of the following represents the best description of the tolerable exception?

• A) The highest exception rate the auditor will permit in the control being tested and still conclude it is operating effectively.
• B) The highest exception rate the auditor expects to find in the population.
• C) The number of exceptions found in the sample divided by the sample size.
• D) The highest estimated exception rate in a population at a given ARACR.

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Definitions:

Substitute Object

An alternative that replaces or serves in place of an original item or concept.

Reaction Formation

A psychological defense mechanism where an individual unconsciously replaces an unacceptable or threatening impulse with an exaggerated version of its opposite.

Overprotective

Describes behaviors that excessively shield others, particularly children, from potential harm, often limiting their experiences and growth.

Sublimation

A psychological process where socially unacceptable impulses or idealizations are consciously transformed into socially acceptable actions or behavior, possibly resulting in a long-term conversion of the initial impulse.