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Hi Experts, Please help me solve these problems. I appreciated all your help. Thank you in advance! Audra Dodge, CPA, is performing an attributes sampling
Hi Experts,
Please help me solve these problems. I appreciated all your help. Thank you in advance!
Audra Dodge, CPA, is performing an attributes sampling plan for her audit of Truck Company. In her audit of cash disbursements, she has identified preparing a voucher and marking it as "paid" prior to preparing and mailing a check to the vendor as an important control. Dodge defined any voucher that was not marked as "paid" as being a deviation. In performing her sampling application, she established the following parameters: Requlred: a. Identify what factors Dodge considered in establishing the risk of overreliance, expected population deviation rate, and tolerable rate of deviation. b. Assume that Dodge wished to place additional reliance on this control. How would that affect the three parameters in part (a)? d. If Dodge selected the sample size in part (c) and found four deviations, what is the sample rate of deviation? e. Using AICPA sample evaluation tables, determine the ULRD. (Note: If the sample size cannot be directly located on the sample evaluation table, round down to the next highest sample size.) f. What would Dodge's conclusion be with respect to the functioning of this controlStep by Step Solution
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