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Assume you audited control compliance in the Kingston Company for the deviations related to a random selection of sales transactions, as shown in Exhibit EP

Assume you audited control compliance in the Kingston Company for the deviations related to a random selection of sales transactions, as shown in Exhibit EP 10-4. For different sample sizes, the number of deviations was as in Exhibit 10-4.

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Required: For each deviation and each sample, calculate the rate of deviation in the sample (sample deviation rate).

EXHIBIT EP 10-4 Cadulating Sample Deviation Rates SAMPLE SIZES 30 60 80 90 120 160 220 240 260 300 0 O 0 0 0 0 0 O 0 O O 0 0 1 2 2 3 3 0 3 6 8 10 14 17 23 26 31 0 0 0 0 2 4 8 9 9 12 . Missing sales invoice Missing bill of lading No credit approval Wrong prices used Wrong quantity billed Wrong invoice arithmetic Wrong invoice date Posted to wrong account 1 2 4 4 4 5 5 5 5 5 Non 0 0 0 1 2 2 2 2 3 ONU 0 0 2 2 2 2 2 . . ON 0 o 0 0 0 0

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