Final answer:
The audit team compares the upper limit rate of deviation to the tolerable rate of deviation when using sampling in the study of internal control, determining control effectiveness.
Step-by-step explanation:
When using sampling in the study of internal control, the audit team would compare the upper limit rate of deviation to the tolerable rate of deviation. This comparison is crucial as it allows the auditors to determine if the deviations found within the sample are indicative of a material weakness in the company's internal controls. If the upper limit rate of deviation exceeds the tolerable rate, it indicates that the controls are not operating at an acceptable level, leading the audit team to potentially conclude that there are significant deficiencies or material weaknesses in the internal control system. Conversely, if the upper limit rate is less than or equal to the tolerable rate, the auditors may determine that the control being tested is operating effectively, provided there are no other qualitative concerns.