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Instructions: Use Data Analytics software to evaluate the 4 internal control procedures below. Populate the yellow cells with your solutions from IDEA. In the green
| Instructions: Use Data Analytics software to evaluate the 4 internal control procedures below. Populate the yellow cells with your solutions from IDEA. In the green drop-down cells, indicate whether or not you accept or reject the control procedure. Remember that if the Upper Deviation rate exceeds the Tolerable Deviation rate, it signifies that the control is not functioing properly. | ||||||
| Part 1 - Compute the Sample Size | ||||||
| Control Procedure | ||||||
| Parameters | 1 | 2 | 3 | 4 | ||
| Risk of Incorrect Acceptance | 5% | 5% | 10% | 10% | ||
| Tolerable Deviation rate | 4% | 5% | 7% | 8% | ||
| Expected Population Deviation rate | 1% | 2% | 3% | 4% | ||
| Sample Size | ||||||
| Part 2 - Compute the Sample Deviation rate and the Upper Deviation limit, then Accept or Reject the Control. | ||||||
| Control Procedure | ||||||
| Results | 1 | 2 | 3 | 4 | ||
| Number of Deviations | 0 | 5 | 4 | 3 | ||
| Tolerable Deviation rate | 4% | 5% | 7% | 8% | ||
| Sample Size | ||||||
| Sample Deviation rate | ||||||
| 1-sided Upper Limit rate | ||||||
| Auditor's Assessment of Control | ||||||
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