In evaluating this sample,the auditor decided to increase the level of the preliminary assessment of control risk because the:
A)Tolerable rate of deviation (7%)was less than the upper limit rate of deviation (8%).
B)Expected population deviation rate (7%)was more than the percentage of errors in the sample (3.5%).
C)Expected population deviation rate (2.5%)was less than the tolerable rate of deviation.
D)Upper limit rate of deviation (8%)was more than the percentage of errors in the sample (3.5%).

Question

Quizplus · Accepted Answer

The auditor increases the level of control risk when the tolerable rate of deviation is less than the upper limit rate of deviation, indicating that the actual deviation rate may exceed what is acceptable.

In Evaluating This Sample,the Auditor Decided to Increase the Level