An auditor is using audit sampling to test transactions in the acquisition and payment cycle. She would normally set the tolerable exception rate at what level?
A) low
B) medium
C) high
D) indeterminate

Question

Quizplus · Accepted Answer

Setting a low tolerable exception rate means that the auditor expects a low level of errors in the transactions being tested. This is typically the preferred level for important areas such as the acquisition and payment cycle.

An Auditor Is Using Audit Sampling to Test Transactions in the Acquisition