The risk which the auditor is willing to take in accepting a control as being effective when the True population exception rate is greater than a tolerable rate is the
A)finite correction factor.
B)tolerable exception rate.
C)acceptable risk of overreliance.
D)estimated population exception rate.

Question

Quizplus · Accepted Answer

Acceptable risk of overreliance refers to the level of risk that the auditor is willing to take in accepting a control as effective when the true population exception rate is greater than the tolerable rate. It represents the maximum risk that the auditor is willing to take in order to maintain the efficiency of the audit. The other options (A, B, and D) do not accurately describe this concept.

The Risk Which the Auditor Is Willing to Take in Accepting