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Describe the Tolerable Exception Rate

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Describe the tolerable exception rate and how you might use this as an auditor. Explain how you might determine the rate you select.

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The solution describes the tolerable exception rate and how you might use this as an auditor.

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Tolerable Exception Rate (TER) and how it is used in Auditing

The tolerable exception rate in auditing is the maximum compliance exception rates that an auditor is willing to accept in any auditing tests. This rate is often related to the materiality of the auditing program. It represents the rate that an auditor will permit in the population sample and he/she still be willing to use the amount of monetary misstatements in the transactions and the ...

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