When the computed upper exception rate is greater than the tolerable exception rate, it is necessary for the auditor to take specific action. Which of the following courses of action would be most difficult to justify? Reduce the tolerable exception rate so as to accept the sample results. Expand the sample size and perform more tests. Revise the assessed control risk. Write a letter to management which outlines the control deficiencies.

When the CUER (i.e. computed upper exception rate) is greater than the TER (i.e. tolerable exception…

Answered: When the computed upper exception rate…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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When the computed upper exception rate is greater than the tolerable exception rate, it is necessary for the auditor to take specific action. Which of the following courses of action would be most difficult to justify?

		Reduce the tolerable exception rate so as to accept the sample results.
		Expand the sample size and perform more tests.
		Revise the assessed control risk.
		Write a letter to management which outlines the control deficiencies.

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