Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

in performing a test of controls for sales order approvals, the cpa's stipulate a tolerable deviation rate of 8 percent with a risk of assessing

in performing a test of controls for sales order approvals, the cpa's stipulate a tolerable deviation rate of 8 percent with a risk of assessing control risk too low of 5 percent. They anticipate a deviation rate of 2 percent.

a, what type of sampling plan should the auditors use for this test?

b. using the appropriate table or formula from this chapter computer the required smaple size for the test.

c. assume that the sample indicates four deviations. May the cpa conclude with a 5 percent risk of assessing control risk too low that the population deviation rate does not exceed the tolerable rate of 8 percent

d. use the acl to compute the required sampel size for the test. assume that the population size is composed of 100,000 items.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Where Does Money Grow

Authors: Beth McGuinness

1070202150, 978-1070202150

More Books

Students also viewed these Accounting questions

Question

Prepare the tax analysis approach.

Answered: 1 week ago

Question

Example. Evaluate 5n+7 lim 7-00 3n-5

Answered: 1 week ago