If the ______________________ exceeds the ______________________,the audit team would decide to rely on internal control as planned and maintain control risk at planned levels.
A) upper limit rate of deviation; tolerable rate of deviation.
B) tolerable rate of deviation; upper limit rate of deviation.
C) expected population deviation rate; tolerable rate of deviation.
D) tolerable rate of deviation; expected population deviation rate.

Question

Quizplus · Accepted Answer

If the tolerable rate of deviation (an amount of deviation from internal controls that the auditor is willing to accept) is higher than the upper limit rate of deviation (the maximum amount of deviation the auditor expects to find), then the auditor can rely on the internal controls as planned and maintain control risk at planned levels. Therefore, option B is the correct answer.

If the ______________________ Exceeds the ______________________,The Audit Team Would Decide

If the Exceeds the ,The Audit Team Would Decide