The assurance that the _______ is not exceeded by the actual rate of deviation is influenced by the degree to which the auditor intends to rely on the control as a basis for limiting substantive tests or for supporting an opinion on internal control over financial reporting (ICFR).
A)tolerable rate of deviation
B)expected rate of deviation in the population
C)desired level of assurance
D)control exception

Question

Quizplus · Accepted Answer

The tolerable rate of deviation is the threshold set by the auditor that should not be exceeded by the actual rate of deviation to ensure the effectiveness of the control. If the actual deviation rate is within this tolerable limit, the auditor may decide to rely on the control and potentially reduce the extent of substantive testing.

The Assurance That the _______ Is Not Exceeded by the Actual