An auditor audited a random sample of 60 cash disbursements and found one improperly authorized disbursement (error).The

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An auditor audited a random sample of 60 cash disbursements and found one improperly authorized disbursement (error).The achieved upper limit of control failures is 7.7% at a 5% risk of assessing control risk too low. What does this achieved upper limit mean? How does the auditor decide whether this result indicates that the control is working as expected?

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Auditing a business risk appraoch

ISBN: 978-0324375589

6th Edition

Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston

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