Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Dodge, CPA, is conducting tests of controls on cash disbursements of Truck Company. Dodge identified the preparation of a voucher and marking it as 'paid'
Dodge, CPA, is conducting tests of controls on cash disbursements of Truck Company. Dodge identified the preparation of a voucher and marking it as 'paid' prior to preparing and mailing a check to the vendor as an important control. Based on the importance of this control and the deviation rate observed in prior audits, Dodge established the following parameters:
Risk of overreliance 10 percent
Expected deviation rate 2.50 percent
Tolerable deviation rate 7 percent
For this test of controls, what is considered a 'deviation'?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started