Tolerable deviation rate is the maximum rate of deviation from a control that an auditor is willing to accept and still use the planned control risk.

Question

Quizplus · Accepted Answer

Tolerable deviation rate is indeed the maximum rate of deviation from a prescribed control procedure that an auditor is willing to accept without altering the planned level of control risk. This concept is used during the assessment of an entity's internal controls.

Tolerable Deviation Rate Is the Maximum Rate of Deviation from a Control