Question 410 Marks

The following are 5 audit populations, auditor judgements and attribute sampling results.

1

2

3

4

5

TDR %

5

5

7

6

8

EPDR %

0

2

2

0

3

ARO %

5

5

5

10

10

Actual sample size

75

200

90

50

50

Number of deviations in the sample

1

1

2

1

3

Required sample size according to Table

Computed upper deviation rate

Accept or reject population?

Please refer to Attribute Sampling Tables at the back of this exam paper.

a.Using Table 14.11, determine the required sample size for each population according to attribute sampling tables. Enter these in the above table.

(1 mark)

b.What is one benefit of selecting a sample size larger than recommended by sampling tables?

(1 mark)

c.What is one disadvantage of selecting a sample size larger than recommended?

(1 mark)

d.What is one disadvantage of selecting a sample size smaller than recommended?

(1 mark)

Question 4 continued next page

Question 4 (continued)

e.What 2 factors increase the required sample size?

(1 mark)

Factor

Higher/lower

f.Determine the CUDR for each population with reference to Table 14.12. Enter these in the table above.

(1 mark)

g.What 2 factors increase the CUDR?

(2 marks)

Factor

Higher/lower

h.Which populations should be accepted based on these sample results? Enter these in the table above.

(1