The maximum population rate of deviation from a prescribed control that the auditors will accept without modifying the planned assessment of control risk. Risk of accessing control risk too low Allowance for sampling risk Discovery sampling Tolerable deviation rate Projected misstatement
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'This term is synonymous with acceptable audit risk Audit assurance Tolerable misstatement Detection risk Materiality'
Jennifer S.
Refer to textbook chapter 8 section titled Attributes Sampling and the tables in Exhibit 8.6 Tables 1 and 2 are used to aid the auditor in interpreting the results of control tests. Assume the tolerable deviation rate is 12%. For each item in the partially table below, enter the upper limit of deviations for that item. For those situations when no deviations are detected in the sample, the upper limit of deviations may be greater than zero. This is because the sample size is very low; so there is a strong possibility that even though the auditor detected no deviations in the sample of 20 items, there exist deviations that the auditor failed to detect. Sampling risk Sample Size Number of Deviations Upper Limit of Deviations 5% 20 0 % 5% 75 5 % 5% 150 10 % 10% 20 0 % 10% 75 5 % 10% 150 10 %
Dominador T.
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