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  3. Study Set
    Auditing and Assurance Services Study Set 2
  4. Exam
    Exam 15: Audit Sampling for Tests of Controls and Substantive Tests of Transactions
  5. Question
    When the Sample Exception Rate (SER) Exceeds the Tolerable Exception
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When the Sample Exception Rate (SER) Exceeds the Tolerable Exception

Question 41

Question 41

True/False

When the sample exception rate (SER) exceeds the tolerable exception rate (TER), the auditor should decide whether to increase sample size or to revise assessed control risk on the basis of cost versus benefit.

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