Which of the following must be set prior to testing a sample?
A) sample exception rate
B) achieved upper precision limit
C) computed exception rate
D) tolerable exception rate

Question

Quizplus · Accepted Answer

The tolerable exception rate must be set prior to testing a sample. This is the maximum rate of exceptions that the auditor will allow before concluding the account balance is materially misstated. The other options (sample exception rate, achieved upper precision limit, computed exception rate) are all calculated or determined during or after testing the sample.

Which of the Following Must Be Set Prior to Testing