If the auditor concludes that the CUER is 5% at a 8% sampling risk, this means that the exception rate in the population is no greater than 5% with an 8% risk of the exception rate exceeding 5%.

Question

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A CUER (Computed Upper Exception Rate) of 5% at 8% sampling risk means that the auditor has 8% chance of incorrectly concluding that the exception rate in the population is greater than 5%. Therefore, the true exception rate in the population is no greater than 5% with a 92% level of confidence (100%-8%).

If the Auditor Concludes That the CUER Is 5% at a 8