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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
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). | |||||
Description of Control Activities | Desired Confidence Level | Population | Tolerable Deviation Rate (%) | Expected Population Deviation Rate (%) | Sample Size |
Document packet includes all documents appropriate for the transaction. | 90% | 2,147 | 5% | 1% | Enter Here |
The Purchase Requisition is signed by a supervisor. | 90% | 2,147 | 10% | 4% | Enter Here |
The Purchase Order is signed by an authorized purchasing agent. | 90% | 2,147 | 10% | 1% | Enter Here |
Quantities on vendor's invoice agree with related receiving report and purchase order, and invoice is mathematically correct. | 90% | 2,147 | 5% | 1% | Enter Here |
All documents in voucher packet have been stamped "paid". | 90% | 2,147 | 10% | 1% | Enter Here |
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. For control activities that you reject, please indicate necessary revisions to the audit plan. | ||||||
Description of Control Activities | Desired Confidence Level | Sample Size | Number of Deviations | Computed Upper Deviation Rate (%) | Accept/ Reject | Describe Any Necessary Revisions to the Audit Plan |
Document packet includes all documents appropriate for the transaction. | 90% | 0 | 0 | Enter Here | ||
The Purchase Requisition is signed by a supervisor. | 90% | 0 | 2 | Enter Here | ||
The Purchase Order is signed by an authorized purchasing agent. | 90% | 0 | 1 | Enter Here | ||
Quantities on vendor's invoice agree with related receiving report and purchase order, and invoice is mathematically correct. | 90% | 0 | 1 | Enter Here | ||
All documents in voucher packet have been stamped "paid". | 90% | 0 | 0 | Enter Here | ||
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