Which of the following is the level at which the control's failure to operate would cause the auditor to conclude that the control is not effective and would likely change the auditor's planned assessment of control risk in performing tests of account balances?
A)Tolerable failure rate.
B)Allowable risk of assessing control risk too low.
C)Expected failure rate.
D)Allowance for sampling error.

Question

Quizplus · Accepted Answer

The tolerable failure rate is the maximum rate of deviation from a prescribed control that an auditor is willing to accept without altering the planned reliance on that control. If the actual failure rate exceeds this level, the auditor would likely reassess the control risk.

Which of the Following Is the Level at Which the Control's