Question
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.
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