Chapter 08 Problem 8-26 LO 8-6 Use the sample sizes and the number of deviations determined below. Control Procedure 2 3 5 % 10 % 7% 3% Parameters Risk of incorrect acceptance Tolerable deviation rate Expected population deviation rate Sample size (using tables) Sample size (using IDEA) Results Number of deviations Sample size Sample deviation rate 1 5 % 4% 1 % Computed upper deviation rate using Tables 1-Sided upper limit using IDEA Auditor's conclusion 156 156 1 5% 2% Does support 181 181 Determine the sample deviation rate, the computed upper deviation rate, and the auditor's conclusion (l.e., testing results do or do not support operating effectiveness of the control) for each control procedure. (For Results, use Table 8-8 & Table 8-9 or IDEA) (Round your rates values to 1 decimal place.) 0 156✔ 0 2.0 ✔ 94 94 % % % 4 10% 8% 98 98 > Answer is not complete. Control Procedure 2 Does not support 5 181✔ 2.8 6.9 ✓ % % % 3 Does not support 4 94✔ 4.3 8.7 ✓ % % % 4 Does support 3 98✔ 3.1 % 7.3 % %
Chapter 08 Problem 8-26 LO 8-6 Use the sample sizes and the number of deviations determined below. Control Procedure 2 3 5 % 10 % 7% 3% Parameters Risk of incorrect acceptance Tolerable deviation rate Expected population deviation rate Sample size (using tables) Sample size (using IDEA) Results Number of deviations Sample size Sample deviation rate 1 5 % 4% 1 % Computed upper deviation rate using Tables 1-Sided upper limit using IDEA Auditor's conclusion 156 156 1 5% 2% Does support 181 181 Determine the sample deviation rate, the computed upper deviation rate, and the auditor's conclusion (l.e., testing results do or do not support operating effectiveness of the control) for each control procedure. (For Results, use Table 8-8 & Table 8-9 or IDEA) (Round your rates values to 1 decimal place.) 0 156✔ 0 2.0 ✔ 94 94 % % % 4 10% 8% 98 98 > Answer is not complete. Control Procedure 2 Does not support 5 181✔ 2.8 6.9 ✓ % % % 3 Does not support 4 94✔ 4.3 8.7 ✓ % % % 4 Does support 3 98✔ 3.1 % 7.3 % %
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter8: Specialized Audit Tools: Attributes Sampling, Monetary Unit Sampling, And Data Analytics Tools
Section: Chapter Questions
Problem 15CYBK
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