Tolerable rate of deviation
The tolerable rate of deviation is the rate of deviation from prescribed internal controls set by the auditor for a controls sampling procedure. The auditor compares the sample result with the planned tolerance and evaluates the conclusion.
Worked example
An auditor chooses an acceptable deviation rate before testing evidence of invoice approval.
Common mistake
Do not confuse a rate of control deviations with a monetary misstatement tolerance.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Supporting | September 2026–June 2027 |