Auditing: A Risk Based-Approach (MindTap Course List)
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN: 9781337619455
Author: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher: Cengage Learning
Question
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Chapter 8, Problem 16RQSC
To determine

Introduction: Deviation limit is the range of the samples to avoid the unmanageable risk. The auditor should analyze the limit qualitative as well quantitative.

Reason about focusing to the deviation’s upper limit and explain the actions taken by the auditor when it exceeds the tolerable rate.

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What options are available to the audit team if the ULRD is greater than the tolerable rate of deviation?
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In determining the sample size for a test of controls, an auditor should consider the expected deviation rate, desired confidence level, and the * O Nature and cause of deviations O Population size O Risk of incorrect acceptance O Tolerable deviation rate

Chapter 8 Solutions

Auditing: A Risk Based-Approach (MindTap Course List)

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