Auditing

Estimated Population Exception Rate (in Percent) 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 5.00 6.00 7.00 Determining Sample Size for Attributes Sampling ARO of 5% 5 PERCENT RISK OF OVERRELIANCE 149 236 313 386 99 157 157 208 257 303 392 Tolerable Exception Rate (in Percent) 74 117 117 117 156 156 192 227 294 390 59 93 93 93 93 124 124 153 181 208 234 286 361 458 6 49 78 78 78 78 78 103 103 127 127 150 173 195 238 280 341 421 7 8 9 42 36 32 66 58 51 66 58 51 66 58 51 66 58 51 66 58 51 66 58 51 88 77 51 88 77 68 88 77 68 109 77 68 109 95 68 129 95 84 148 112 84 167 112 84 185 129 100 221 146 100 478 240 158 266 10 29 46 46 46 46 46 46 46 46 61 61 61 61 61 76 76 89 116 179 298 15 19 30 30 30 30 30 30 30 30 30 30 30 30 30 40 40 40 40 50 68 20 14 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 30 30 37 The following is a partial audit program for the audit of sales transactions. (Click the icon to view the table for determining sample size for attributes sampling using an ARO of 5%.) i (Click the icon to view the partial audit program.) (Click the icon to view the table for determining sample size for attributes sampling using an ARO of 10%.) Partial audit program - X Foot the sales journal for one month and trace the postings to the general . ledger. 2. Review the sales journal for any large or unusual transactions. 3. Examine sales order for evidence of credit approval prior to shipment. 4. Vouch entries in sales journal to sales invoice and shipping document. Examine evidence on sales invoice that the prices were agreed to the 5. approved price list. 6. Recompute extensions of price and quantities on the sales invoice. 7. Trace entries in sales journal to entry in accounts receivable master file Print DoneDetermining Sample Size for Attributes Sampling ARO of 10% 10 PERCENT RISK OF OVERRELIANCE Estimated Population Exception Rate (in Percent) 2 0.00 114 0.25 194 0.50 194 0.75 265 1.00 398 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 5.00 6.00 7.00 8.00 76 129 129 129 176 221 265 390 Tolerable Exception Rate (in Percent) 57 96 96 96 96 132 132 166 198 262 353 471 45 77 77 77 77 77 105 105 132 132 158 209 258 306 400 38 64 64 64 64 64 64 88 88 88 110 132 132 153 194 235 274 7 8 9 32 28 25 55 48 42 55 48 42 55 48 42 55 48 42 55 48 42 55 48 42 55 48 42 75 48 42 75 65 42 75 65 58 94 65 58 94 65 58 113 82 58 113 82 73 131 98 73 149 98 73 318 160 115 349 182 385 10 22 38 38 38 38 38 38 38 38 38 38 52 52 52 52 52 65 78 116 199 424 15 15 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 34 43 52 60 20 11 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 25 25 25 The following is a partial audit program for the audit of sales transactions. (Click the icon to view the table for determining sample size for attributes sampling using an ARO of 5%.) i (Click the icon to view the partial audit program.) (Click the icon to view the table for determining sample size for attributes sampling using an ARO of 10%.) Read the requirements. Requirement a. Identify which audit procedures can be tested by using attributes sampling. (Complete all input fields.) Tested using Audit Procedure attribute sampling 1. Foot the sales journal for one month and trace the postings to the general ledger. 2. Review the sales journal for any large or unusual transactions. Yes 3. Examine sales order for evidence of credit approval prior to shipment. No 4. Vouch entries in sales journal to sales invoice and shipping document. 5. Examine evidence on sales invoice that the prices were agreed to the approved price list. 6. Recompute extensions of price and quantities on the sales invoice. 7. Trace entries in sales journal to entry in accounts receivable master file.Requirement b. What is the appropriate sampling unit for the tests in part a? The appropriate sampling unit for the above tests using attributes sampling is in the an account number, journal reference or line item general journal a sales invoice number, date, or line item general ledger a sales price, quantity or customer name sales journal shipping journalRequirement c. List the attributes for testing in part a. (Complete all input fields. Select "Attribute sampling is not appropriate - N/A" for procedures that would not use attribute sampling.) Audit Procedure Attribute 1. Foot the sales journal for one month and trace the postings to the general ledger. 2. Review the sales journal for any large or unusual transactions. 3. Examine sales order for evidence of credit approval prior to shipment. 4. Vouch entries in sales journal to sales invoice and shipping document. 5. Examine evidence on sales invoice that the prices were agreed to the approved price list. 6. Recompute extensions of price and quantities on the sales invoice. 7. Trace entries in sales journal to entry in accounts receivable master file. Attribute sampling is not appropriate - N/A. Entries in the sales journal have been shipped as evidence by the existence of a related shipping document. Entry in the sales journal matches entry in accounts receivable master file. Evidence that prices used to calculate the sales amount on the invoice were matched to the approved price list. The calculation of the sales amount on the sales invoice is mathematically accurate. The date that credit approval is documented on the sales order and precedes the date on the shipping document.Requirement d. Assume an ARO of 5 percent and a TER of 7 percent for tests of controls and 4 percent for substantive tests of transactions. The EPER for tests of controls is 1.5 percent, and for substantive tests of transactions it is 0.25 percent. What is the initial sample size for each attribute? (Enter only audit procedures that can be tested by using attributes sampling. If an input field is not used in the table leave the input field empty; do not enter a zero.) Sample Audit Procedure size 1. Foot the sales journal for one month and trace the postings to the general ledger. 2. Review the sales journal for any large or unusual transactions. 3. Examine sales order for evidence of credit approval prior to shipment. 4. Vouch entries in sales journal to sales invoice and shipping document. 5. Examine evidence on sales invoice that the prices were agreed to the approved price list. 6. Recompute extensions of price and quantities on the sales invoice. 7. Trace entries in sales journal to entry in accounts receivable master file