The tolerable rate of deviation set by the auditor for tests of controls depends primarily on which of the following? a. The planned risk of assessing control risk too low. b. The dollar amount of substantive misstatements. c. The anticipated cause of the errors. d. The tolerable rate used in audits of other clients in the same industry.
The tolerable rate of deviation set by the auditor for tests of controls depends primarily on which of the following? a. The planned risk of assessing control risk too low. b. The dollar amount of substantive misstatements. c. The anticipated cause of the errors. d. The tolerable rate used in audits of other clients in the same industry.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The tolerable rate of deviation set by the auditor for tests of controls depends primarily on which of the following?
a. The planned risk of assessing control risk too low.
b. The dollar amount of substantive misstatements.
c. The anticipated cause of the errors.
d. The tolerable rate used in audits of other clients in the same industry.
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