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ACC/546 Auditing and Assurance - tolerable exception rate

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Described 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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Solution Summary

Your tutorial is 309 words and explains what a tolerable deviation rate is, the reason for different levels, and how the auditor uses these rates.

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The tolerable deviation rate is the most deviations or exceptions from the control procedures that the auditor is willing to accept and still conclude that the control is working as designed. In other words, how many exceptions are you willing to accept before you say that the control is "not working" and you will not rely on it.

The reason you have a tolerable error rate is that there is always some margin of error in samples. The second reason is that controls do ...

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Carol Sargent, PhD
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  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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