What type of sampling plan should the auditors use for test?, Auditing

Assignment Help:

In performing a test of controls for sales order approvals, the CPAs stipulate a tolerable deviation rate of 8 percent with a risk of assessing control risk too low of 5 percent. They anticipate a deviation rate of 2 percent.
a. What type of sampling plan should the auditors use for this test?

b. Using the appropriate table or formula from this chapter, compute the required sample size for the test.

c. Assume that the sample indicates four deviations. May the CPAs conclude with a 5 percent risk of assessing control risk too low that the population deviation rate does not exceed the tolerable rate of 8 percent?

d. Use ACL to compute the required sample size for the test. Assume that the population size is composed of 100,000 items.

e. Assume that the sample indicates four deviations using the sample size determined in d.
Use ACL to calculate the results. May the CPAs conclude with a 5 percent risk of assessing control risk too low that the population deviation rate does not exceed the tolerable rate of 8 percent?


Related Discussions:- What type of sampling plan should the auditors use for test?

Internal control, Internal Control Procedures: As an auditor, you have disc...

Internal Control Procedures: As an auditor, you have discovered the following problems with the accounting system control procedures of Jim's Supply Store. For each of the followin

Assignment, i have assignment question

i have assignment question

Audit procedures -research and development , Audit Procedures -Research and...

Audit Procedures -Research and Development The auditor should ensure that: a) Any costs incurred in the buy of fixed assets in order to give facilities for development and

Auditing, Please assist me with these assignments The auditors for Weston U...

Please assist me with these assignments The auditors for Weston University are conducting their audit for the fiscal year ended December 31, 2011. Specifically, the audit firm is n

Accounting treatment prescribed by ias 38, Accounting Treatment Prescribed ...

Accounting Treatment Prescribed by IAS 38 IAS 38 prescribes the accounting treatment about to intangible assets, except: a) Intangible assets which are under the scope of a

Process of conducting an audit, Question : Describe the methodology and...

Question : Describe the methodology and process of conducting an audit. Define audit Describe the methodology of conducting an audit  Describe the process of conduc

What is an integrated audit, The modern integrated audit approach combines ...

The modern integrated audit approach combines elements of various traditional audit areas having financial, operational, and information technology.

Forms of evidence, Forms of evidence a) Observation: is usually witne...

Forms of evidence a) Observation: is usually witnessing internal control and book-keeping procedures. It includes attendance at wages pay out. Observation of stock-take, open

External financial statement, As per the standard audit engagement letter s...

As per the standard audit engagement letter signed between external financial statement auditor and client/ auditee, auditor's primary role is to detect fraud. Ans: No, the prim

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd