Distinguish between the TER and the CUER. How is each determined?
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The tolerable exception rate TER represents the exception rate that the auditor will permit in the population and still be willing to use the assessed control risk andor the amount of monetary misstatements in the transactions established during planning TER is determined by choice of the auditor on the basis of his or her professional judgment The computed upper exception rate CUER is the highest estimated exception rate in the population at a given ARACR For nonstatistical sampling CUER is determined by adding an estimate of sampling error to the SER sample exception rate For statistical sampling CUER is determined by using a statistical sampling table after the auditor has completed the audit ...View the full answer
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Related Book For 
Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
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