a. Tolerable deviation rate = 0.05. Expected population deviation rate = 0. Acceptable risk of assessing control
Question:
a. Tolerable deviation rate = 0.05. Expected population deviation rate = 0. Acceptable risk of assessing control risk too low = 0.01, 0.05, 0.10.
b. Acceptable risk of assessing control risk too low = 0.10. Expected population deviation rate = 0.01. Tolerable deviation rate = 0.10, 0.08, 0.05, 0.03, 0.02.
c. Acceptable risk of assessing control risk too low = 0.10. Tolerable deviation rate = 0.01, 0.02, 0.04, 0.07, 0.09.
Required:
For the specifications of acceptable risk of assessing control risk too low, tolerable deviation rate, and expected population deviation rate shown below, prepare tables showing the appropriate sample sizes. (Use the evaluation tables at the back of this appendix or the Poisson risk factor equation as given in the solution to EP 10B-3.) Then, repeat a, b, and c for the sample size when the population contains only 500 units.
Step by Step Answer:
Auditing An International Approach
ISBN: 978-1259087462
7th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley