Question: Distinguish between the TDR and the CUDR. How is each determined?

Distinguish between the TDR and the CUDR. How is each determined?

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The tolerable deviation rate TDR represents the deviation 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 TDR is determined by choice of the auditor on the basis of his or her professional judgment The computed upper deviation rate CUDR is the highest estimated deviation rate in the population at a given ARO For nonstatistical sampling CUDR is determined by adding an estimate of sampling error to the SDR sample deviation rate For statistical sampling CUDR is determined by using a statistical sampling table after the auditor has completed the audit ... View full answer

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