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Flashcards in Sampling Deck (5):
1

Acceptable risk of overreliance (ARO).

The risk that the auditor is willing to take of accepting a control as effective or a rate of monetary misstatements as tolerable,when the true population exception rate is greater than the tolerable exception rate.

2

Tolerable exception rate (TER).

Exception rate that the auditor will permit inthe population and still be willing to conclude the control is operating effectively and/or the amount of monetary misstatements in the transactions established during planning is acceptable.

3

Estimated populationexception rate (EPER).

Exception rate thatthe auditor expects to find in the population before testing begins.

4

Sample exception rate (SER).

Number of exceptions in the sample divided by the sample size.

5

Computed upper exception rate (CUER).

The highest estimated exception rate in the population at a given ARO.