As the expected population deviation rate increases, the:
A) degree of assurance desired by the sample's audit evidence increases.
B) tolerable rate of deviation decreases.
C) tolerable rate of deviation increases.
D) degree of assurance desired by the sample's audit evidence decreases.

Question

Quizplus · Accepted Answer

As the expected population deviation rate increases, the tolerable rate of deviation increases. This is because the auditor is less likely to be able to detect a deviation if the expected deviation rate is higher. Therefore, the auditor must increase the tolerable rate of deviation in order to maintain the same level of assurance.

As the Expected Population Deviation Rate Increases, The