When Determining Tolerable Exception Rate (TER)

Multiple Choice

When determining tolerable exception rate (TER) ,

A) the auditor considers the degree of reliance to be placed on the control and the significance of the control to the audit.
B) if only one internal control is used to support a low control risk assessment for an objective, TER will be higher for the attribute than if multiple controls are used to support a low control risk assessment for the same objective.
C) control deviations increase both the risk of material misstatements in the accounting record, and will always result in misstatements.
D) a smaller sample size is needed for a low TER than for a high TER.