(Solved by Humans)-Your preliminary assessment of control risk over cash disbursements is low. You base this assessment
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Your preliminary assessment of control risk over cash disbursements is low. You base this assessment on the requirements that each cash disbursement be supported by a purchase requisition, a properly approved purchase order, an approved vender list, an invoice, and a receiving report that requires counting of incoming goods. The company has made 7260 purchases during the year. The tolerable deviation rate is 3% and the expected deviation rate is less than .25%. The appropriate risk of assessing control risk too low is 5%. You found 2 deviations. What is the achieved upper deviation rate?
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This question was answered on: 10 May, 2025
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