Question

Define expected rate of deviation.

A. It is the rate at which the auditor expects controls to not function as planned.
B. It is the maximum rate of deviation from a prescribed control that an auditor is willing to accept.
C. It is the rate that represents the confidence that the evidence obtained is representative of the underlying population from which the sample was taken.
D. It is similar to the actual rate of deviation in the population.

Answer 1

B. It is the maximum rate of deviation from a prescribed control that an auditor is willing to accept. The expected rate of deviation is the maximum rate of deviation from a prescribed control that an auditor is willing to accept.

Step-by-step explanation:

The expected rate of deviation refers to the rate at which the auditor expects controls to not function as planned. It is the maximum rate of deviation from a prescribed control that an auditor is willing to accept. This allows for a margin of error and recognizes that not all controls will perform perfectly.