(CUER) compared with the tolerable exception rate (TER), and also depicts the true population exception rate compared with the tolerable exception rate. As a results of tests of controls, the auditor incorrectly accepted a control as effective. This is indicated by which cell? True State of Population Auditor's Estimate Exception rate is less Exception rate based on Sample than tolerable exceeds tolerable Results exception rate exception rate III CUER is less than tolerable exception rate CUER exceeds tolerable exception rate 11 IV O! O 11 O III O IV