Question
(8 points total) a. Determine the sample size for each of the control procedures shown in the following table (assuming a very large population): Control
(8 points total) a. Determine the sample size for each of the control procedures shown in the following table (assuming a very large population):
| Control Procedure | |||
Parameters | 1 | 2 | 3 | 4 |
Risk of incorrect acceptance | 5% | 5% | 10% | 10% |
Tolerable deviation rate | 4% | 5% | 7% | 8% |
Expected population deviation rate | 1% | 2% | 3% | 4% |
Sample size |
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b. Using the sample sizes determined above and the number of deviaitons shown here, determine the sample deviation rate, the computed upper deviation rate, and the auditors conclusion for each control procedure.
| Control Procedure | |||
Results | 1 | 2 | 3 | 4 |
Number of deviations | 0 | 5 | 4 | 3 |
Sample deviation rate |
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Computed upper deviation rate |
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Auditors conclusion |
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