Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Can you give me the answers for this question? I need what I need to type in that blank. Explanation is not needed. Thank you
Can you give me the answers for this question? I need what I need to type in that blank.
Shield Retail Limited is a manufacturer of leather goods. Until last year, it sold its products locally and recorded all sales in Korean Won. This year, it expanded its business to Japan, Hong Kong, and Taiwan, which now account for less than 5 percent of its total sales. Shield Retail Limited has been your client for several years and has instituted internal controls for sales at your recommendation. Two of these controls are: (1) credit should be electronically approved based on authorized credit limits preset in the system, and (2) sales invoices should be supported by authorized shipping documents and approved customer orders. Multiple customer orders can be combined to the bill on the sales invoice. The first sales invoice for the year is numbered 53419 and the last one is 74243 , and the first customer order for the year is numbered 69443 and the last one is 94442. In the audit of sales, one of the major concerns is the effectiveness of the controls in ensuring that the recorded sales tally with shipments. Use this background to answer the next four questions. Assume that you determined to use sampling for the audit procedure to test control (2). What is the sampling unit? Question 3 0/3 pts Assume that you determined to use sampling for the audit procedure to test control (2). Suppose you expect no exceptions in the sample for the audit procedure, but are willing to accept a TER of 6 percent.. At a 5 percent ARO, what is the appropriate sample size for the audit test? Please complete this requirement by using attributes sampling Explanation is not needed. Thank you
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started