In this mini-case you will statistically evaluate the tests of controls on accounts payable for the 2022 audit of EarthWear Clothiers, Incorporated.

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.

12e_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 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. Note: Round your deviation rate answers to 2 decimal places. Omit the "\%" sign in your response