Which of the following is most correct when using audit sampling for exception rates?
A) auditor is concerned with the lowest rate
B) auditor is concerned with the highest rate
C) auditor is concerned with the average on previous audits
D) doesn't impact the auditors decision

Question

Quizplus · Accepted Answer

The auditor is primarily concerned with the highest rate when using audit sampling for exception rates. This is because the highest rate represents the greatest risk of material misstatement and is therefore the most important to identify and address. The auditor may also be interested in the overall pattern of exception rates, but the highest rate should be the main focus.

Which of the Following Is Most Correct When Using Audit