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

Answer 1-8 both attributes

A B 000I Attribute #1 Attribute #2 Risk of Assessing Control Risk too low Expected population deviation rate Sample size (per table) #1 #5 Sample size used (Round Up) #2 #6 Number of deviations found Tolerable deviation rate Achieved Upper Limit #3 #7 Control Effective (Yes or No) #4 #8 I A B 000I Attribute #1 Attribute #2 Risk of Assessing Control Risk too low Expected population deviation rate Sample size (per table) #1 #5 Sample size used (Round Up) #2 #6 Number of deviations found Tolerable deviation rate Achieved Upper Limit #3 #7 Control Effective (Yes or No) #4 #8