Establishing the tolerable deviation rate (TDR) requires:
A) random number tables.
B) statistical frequency probability tables.
C) auditor judgement.
D) a computer program.

Question

Quizplus · Accepted Answer

The tolerable deviation rate (TDR) is a subjective measure established by auditors based on their professional judgement and assessment of the risks of material misstatement. Therefore, auditor judgement is required to establish the TDR. While random number tables and statistical frequency probability tables may be useful in certain audit procedures, they are not necessary for establishing the TDR. A computer program may assist with calculations, but the TDR is not a mathematical calculation that requires a specific program.

Establishing the Tolerable Deviation Rate (TDR) Requires