In this mini-case you will statistically evaluate the tests of controls on accounts payable for the 2016 audit of EarthWear Clothiers, Inc.

INSTRUCTIONS:

Use IDEA to compute:

(1) the Sample Size for each control activity and

(2) the Upper Deviation Rate for the sample results provided.

EARTHWEAR CLOTHIERS

Control Activities Testing - Sampling and Evaluation Sheet: Accounts Payable December 31, 2016

I got the last part right ( Accept or reject) just can't get the sample and Upper Deviation correct?

Work Paper 8-1 Expected Tolerable Population Deviation Deviation Rate Desired Rate (%) 5% 10% 10% Sample Size Confidence Level 90% 90% 90% Population 2,147 2,147 2,147 Description of Control Activities 1 Document packet includes all documents appropriate for the transaction. 196 2 The Purchase Requisition is signed by a supervisor. 3 The Purchase Order is signed by an authorized purchasing agent. 196 4 Quantities on vendor's invoice agree with related receiving report and purchase order, and invoice is mathematically correct. 90% 2,147 5% 196 5 All documents in voucher packet have been stamped paid" 90% 2,147 10% 196 Sample Size Used