Establishing the tolerable deviation rate (TDR)requires:
A) auditor judgement.
B) a computer program.
C) random number tables.
D) statistical frequency probability tables.

Question

Quizplus · Accepted Answer

Establishing the tolerable deviation rate (TDR) involves auditor judgment as it is based on the auditor's assessment of what is acceptable in terms of precision and accuracy of the financial statements. The TDR is specific to each audit and cannot be determined based on a computer program, random number or statistical frequency probability tables alone.

Establishing the Tolerable Deviation Rate (TDR)requires