The Risk Which the Auditor Is Willing to Take in Accepting

question 75

Multiple Choice

The risk which the auditor is willing to take in accepting a control as being effective when the true population exception rate is greater than a tolerable rate is the:

• A) finite correction factor.
• B) tolerable exception rate.
• C) acceptable risk of assessing control risk too low.
• D) estimated population exception rate.

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Definitions:

Final Goods

Products that are completed and ready for sale and consumption, as opposed to intermediate goods used in the production of another product.

Consumer Price Index

An index measuring the change in the price level of a basket of consumer goods and services purchased by households.

Market Basket

A selected set of goods and services used to track changes in prices and measure inflation over time.

Widely Used

A term denoting something that is utilized by a large number of people or entities across various contexts.