The auditor uses professional judgment to estimate
A)the risk of overreliance
B)the sample interval
C)the desired control risk
D)the actual deviation rate
E)the tolerable deviation rate
F)both A and C
G)both A and E
H)both B and D

Question

Quizplus · Accepted Answer

The auditor uses professional judgment to estimate the risk of overreliance (A) and the tolerable deviation rate (E). The desired control risk (C) is a predetermined level set by the auditor, and therefore not estimated using professional judgment. The sample interval (B) and actual deviation rate (D) are determined through the auditing procedures and not estimated using professional judgment. Therefore, the best choice is G, which includes both A and E.

The Auditor Uses Professional Judgment to Estimate