Question
As part of your audit of the Abba company accounts payable function , youraudit program includes a test of controls addressing the company policy requiring
As part of your audit of the Abba company accounts payable function , youraudit program includes a test of controls addressing the company policy requiring that all vouchers be properly approved , you estimate the population deviation rate to be 3 percent .
a) assume that a sample of 100 has been drawn , audit tests performed, and a sample deviation rate 4 percent computed. Furthermore, you have selected a 5 percent risk of assessing control risk too low as appropriate . Use the appropriate table to determine the achieved upper deviation rate.
b) Make the same assumptions as in part (a) . Use ACL to determine the achieved upper deviation rate.
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