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When the computed upper exception rate (CUER) is greater than the tolerable exception rate (TER), it ...

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When the computed upper exception rate (CUER) is greater than the tolerable exception rate (TER), it ...

When the computed upper exception rate (CUER) is greater than the tolerable exception rate (TER), 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 upward.

▸ Write a letter to management which outlines the control deficiencies.

Textbook

Auditing and Assurance Services

Edition: 17^th

Authors: Arens, Elder, Beasley, Hogan

Read 38 times

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freezo1994 Author

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This helped my grade so much Perfect

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Good timing, thanks!

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