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Title: When determining tolerable exception rate (TER), Post by: mrtrombley92 on Aug 1, 2022 When determining tolerable exception rate (TER),
▸ the auditor considers the degree of reliance to be placed on the control and the significance of the control to the audit. ▸ if only one internal control is used to support a low control risk assessment for an objective, TER will be higher for the attribute than if multiple controls are used to support a low control risk assessment for the same objective. ▸ control deviations increase both the risk of material misstatements in the accounting record, and will always result in misstatements. ▸ a smaller sample size is needed for a low TER than for a high TER. Title: When determining tolerable exception rate (TER), Post by: lpants on Aug 1, 2022 Content hidden
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