An auditor who uses statistical sampling for attributes in testing internal controlsshould reduce the planned reliance on a prescribed control when the(1) sample exception rate plus the allowance for sampling risk equals the tolerable rate.(2) sample exception rate is less than the expected rate of exception used inplanning the sample.(3) tolerable rate less the allowance for sampling risk exceeds the sample exceptionrate.(4) sample exception rate plus the allowance for sampling risk exceeds the tolerablerate.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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An auditor who uses statistical sampling for attributes in testing internal controls
should reduce the planned reliance on a prescribed control when the
(1) sample exception rate plus the allowance for sampling risk equals the tolerable rate.
(2) sample exception rate is less than the expected rate of exception used in
planning the sample.
(3) tolerable rate less the allowance for sampling risk exceeds the sample exception
rate.
(4) sample exception rate plus the allowance for sampling risk exceeds the tolerable
rate.

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