Because many of the types of errors and irregularities that may be found in the acquisition and payment cycle represent a misstatement of earnings and are of significant concern to the auditor,the tolerable exception rate selected by the auditor for attribute testing of this cycle will be
A)low.
B)high.
C)average.
D)15% or less.

Question

Quizplus · Accepted Answer

The auditor is concerned with misstatements in the acquisition and payment cycle as they can significantly impact the overall earnings. Therefore, the tolerable exception rate for attribute testing of this cycle should be low.

Because Many of the Types of Errors and Irregularities That