In this mini-case you will statistically evaluate the tests of controls on accounts payable for the 2019 audit of EarthWear Clothiers, Inc. INSTRUCTIONS: Please download the file below to complete the audit tasks associated with this mini-case. The Excel workbook contains the instructions and workpapers you are to complete. 11e Ch8_Mini_case_Testing PartB Input your responses from Work Paper 8-1 into the corresponding questions in Connect. Compute Sample Size The list below indicates the control activities tested using voucher packets in Part A (Part A was a Chapter 6 assignment, but you can complete this assignment even if you did not complete Part A). Use the information provided below to calculate the sample size using IDEA. Please refer to Chapter 8 of the textbook for instructions on how to use IDEA to calculate sample sizes. When different sample sizes are computed for control activities that will be tested concurrently, it is common to use the largest sample size computed for testing all control activities (See Chapter 8 for a more detailed description.) Work Paper 8-1 Description of Control Activities 1 Document packet includes. all documents appropriate for the transaction. Desired Confidence Level Expected Tolerable Population Population Deviation Rate (%) Deviation Rate (%) 90% 2,147 5% Sample Size 12 1% 2 The Purchase Requisition is signed by a supervisor. 90% 2,147 10% 4% 5 3 The Purchase Order is signed by an authorized purchasing agent. 3 90% 2,147 10% 1% 4 Quantities on vendor's invoice agree with related receiving report and purchase order, and invoice is mathematically correct. 90% 2,147 5% 1% 8 5 All documents in voucher packet have been stamped "paid". 10 90% 2,147 10% 1% Sample Size Used 38 x Compute Upper Deviation Rate The list below indicates the test of controls results for each control activity. Use the information provided to evaluate the results using IDEA. Please refer to Chapter 8 for instructions on using IDEA to evaluate test results and to compute the upper deviation rate. After you compute the upper deviation rate, determine whether the test results met the objectives and can be accepted (i.e., determine whether the computed upper deviation rate is below the tolerable deviation rate noted above for the control activity). Select "Accept" or "Reject" from the drop down menu in each cell of the Accept/Reject column. (Round your deviation rate answers to 2 decimal places. Omit the "%" sign in your response.) 4 Quantities Description of Control Activities 1 Document packet includes all documents appropriate for the transaction. 2 The Purchase Requisition is signed by a supervisor. on vendor's invoice agree with related receiving report and purchase order, and invoice is mathematically correct. 5 All documents in voucher packet have been stamped "paid". Desired Confidence Level Sample Size 38 Number of Deviations 5 Computed Upper Deviation Rate (%) Accept/ Reject Accept 90% 90% 0 $6 5 2 10 % Accept 3 The Purchase Order is signed by an authorized purchasing agent. 3 8 Accept 90% 1 % Accept 90% 90% 1 0 % 8 Accept ooo oo