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Attribute Sampling ABC Company processes an average of 600 vouchers payable every month. Each voucher package contains a copy of the check disbursed and supporting
Attribute Sampling
- ABC Company processes an average of 600 vouchers payable every month. Each voucher package contains a copy of the check disbursed and supporting documents such as vendor invoices, receiving reports, and purchase orders. The internal auditor plans to examine a sample of vouchers listed in the voucher register using attribute sampling to evaluate the effectiveness of several controls. The attributes of interest include:
- Attribute #1 - Agreement of voucher amounts with invoice amounts
- Attribute #2 - Voucher canceled after payment
- Based on experience, the auditor expects a deviation rate of 2.0% for the first attribute and 2.0% for the second attribute. The Auditor decides on a tolerable deviation rate of 8% for the first attribute and 7% for the second attribute. He sets the risk of assessing control risk too low at 10%.
- Assume that the auditors tests uncovered three (3) occurrences of vouchers not agreeing with invoice amounts and one (1) occurrence of vouchers not being canceled after payment.
- Complete the Following Schedules:
- NOTE IF SAMPLE SIZE PER TABLE IS A MULTIPLE OF 5, THERE IS NO NEED TO ROUND UP USE THAT NUMBER AND PUT THAT NUMBER IN THE ROUND UP BOX
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