The tolerable deviation rate for a test of controls is generally:
A) unrelated to the expected deviation rate in the related accounting records.
B) identical to the expected deviation rate in the related accounting records.
C) higher than the expected deviation rate in the related accounting records.
D) lower than the expected deviation rate in the related accounting records.

Question

Quizplus · Accepted Answer

The tolerable deviation rate is set higher than the expected deviation rate to allow for some level of error while still relying on the control. It represents the maximum rate of deviation that the auditor is willing to accept without altering the planned reliance on the control.

The Tolerable Deviation Rate for a Test of Controls Is