In using audit sampling for exception rates
A) the auditor wants to know the most the exception rate is likely to be.
B) sampling error is the likelihood that the auditor will miss a monetary misstatement.
C) the upper limit of the interval estimate is known as the sampling risk.
D) the computed upper exception rate (CUER) cannot be considered in the context of specific audit objectives.

Question

Quizplus · Accepted Answer

In using audit sampling for exception rates, the auditor wants to estimate the maximum likely exception rate in the population based on the sample results. This helps the auditor assess the risk of material misstatement and design further audit procedures to address it.

In Using Audit Sampling for Exception Rates