Problem

(Objective 15-5) Define each of the following terms:a. Acceptable risk of overreliance (AR...

(Objective 15-5) Define each of the following terms:

a. Acceptable risk of overreliance (ARO)


b. Computed upper exception rate (CUER)


c. Estimated population exception rate (EPER)


d. Sample exception rate (SER)


e. Tolerable exception rate (TER)

Objective 15-5

Use nonstatistical sampling in tests of controls and substantive tests of transactions.

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