AVF Company processes an average of 400 vouchers payable every month. Each voucher package contains a copy of the check disbursed and supporting 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 internal controls. The attributes of auditor interest include:

Agreement of voucher amounts with invoice amounts

Voucher canceled after payment

Based on experience, the auditor expects: a deviation rate of 2% for the first attribute and 1% for the second. He decides on a tolerable deviation rate of 7% for the first attribute and 6% for the second attribute. He sets the risk of assessing control risk too low at 5%

Assume that the auditor's tests uncovered: Two occurrences of voucher amounts not agreeing with invoice amounts and two occurrences of vouchers not being canceled after payment.

a. Complete the following schedule. (Note: round sample size per table up to next number ending in zero for sample size used.)

b. Evaluate the sample results for the two attributes. Your answer should include:

A statistical conclusion or each attribute

The audit decision you would make based on the quantitative sample results for each attribute

Attribute 1 Attribute 2 Risk of assessing control risk too low Tolerable deviation rate Expected population deviation rate Sample size per table Sample site used Number of deviations identified Sample deviation rate Achieved upper deviation limit Attribute 1 Attribute 2 Risk of assessing control risk too low Tolerable deviation rate Expected population deviation rate Sample size per table Sample site used Number of deviations identified Sample deviation rate Achieved upper deviation limit