Before the population can be considered acceptable based on the acceptable risk of assessing control risk too low, the computed upper exception rate must be:
A) greater than or equal to the tolerable exception rate.
B) greater than the tolerable exception rate.
C) less than or equal to the tolerable exception rate.
D) less than the tolerable exception rate.

Question

Quizplus · Accepted Answer

The computed upper exception rate represents the estimated maximum exception rate based on the sample sample size and sample exception rate. Therefore, in order for the population to be considered acceptable based on the acceptable risk of assessing control risk too low, the computed upper exception rate must be less than or equal to the tolerable exception rate, which is the maximum exception rate the auditor is willing to accept.

Before the Population Can Be Considered Acceptable Based on the Acceptable