Using the spreadsheet program and downloaded data, retrieve the file titled Attrib. Using the sample size and sample evaluation tables in Chapter 8 and the following data, complete the attribute sampling plan worksheet (in using the Sample Results Evaluation table, select the sample size that is closest to your sample size): a. A 5% risk of assessing control risk too low has been decided on for all attributes; b. Misstatements have been defined, and expected deviation rates set for each attribute as follows: 1. Bill of lading not attached to packet1% 2. Incorrect prices1% 3. Extension and/or footing errors0.5% 4. Quantities and/or product type not in agreement with customer order1% 5. Customer balance exceeds authorized credit limit1.5% c. Tolerable deviation rates of 4% have been set for all attributes; and d. The following misstatements were discovered in examining the sample: Sales Order Number Misstatement 12511 Bill of lading not signed by carrier 15439 Invoice causing customer to exceed authorized credit limit 18616 Bill of lading missing 23468 Bill of lading missing 27891 Bill of lading missing.

WP C		BILTRITE BICYCLES, INC.				Prepared by:
		Attribute Sampling Plan Worksheet				Date:
		Sales Processing System				Reviewed by:
		December 31, 2009				Date:
Sampling Unit: Sales Invoices
Population: Numeric File of Sales Invoices
			Expected	Tolerable		Number of	Upper
			Deviation	Deviation	Sample	Detected	Deviation
Attribute Tested		Sampling Risk	Rate	Rate	Size	Errors	Limit
1. Bill of lading attached and signed by carrier		5.00%		4.00%
2. Prices agree with master price list		5.00%		4.00%
3. Extensions and footings correct		5.00%		4.00%
4. Quantities and product type agree with customer order		5.00%		4.00%
5. Customer balance within authorized credit limit		5.00%		4.00%
-	-	-	-	-	-	-

What conclusions can you draw based on your completed sampling plan worksheet? What impact might your findings have on the substantive audit programs for Biltrite? Based on the results of your testing, should the aggregate materiality threshold be changed for any part of the revenue cycle?