The exception rate the auditor will permit in the population and still be willing to conclude that the control is operating effectively is the
A) tolerable exception rate.
B) estimated population exception rate.
C) acceptable risk of overreliance.
D) sample exception rate.

Question

Quizplus · Accepted Answer

The tolerable exception rate is the maximum rate of deviation from the control that the auditor is prepared to accept and still be willing to rely on the control. It is the highest exception rate that the auditor deems acceptable. Therefore, A is the correct choice as it defines the level of exception rate that the auditor finds tolerable.

The Exception Rate the Auditor Will Permit in the Population