The tolerable deviation rate for tests of controls necessary to justify assessing control risk at less than maximum depends primarily on which of the following?
A) The assessed level of control risk.
B) The cause of deviations.
C) The tolerable deviation rate used in audits of similar clients.
D) The amount of any identified substantive misstatements.

Question

Quizplus · Accepted Answer

The tolerable deviation rate for tests of controls necessary to justify assessing control risk at less than maximum depends primarily on the assessed level of control risk. If the assessed level of control risk is low, then a lower tolerable deviation rate could be used.

The Tolerable Deviation Rate for Tests of Controls Necessary to Justify