Assignment ( NAO1)
February 3, 2010 at 7:07 am Leave a comment
Assignment
Chapter 14
AUDIT SAMPLING FOR TEST OF CONTROL AND SUBSTANTIVE TEST OF TRANSACTION
14-29
Questions :
Objective 14-5, 14-7 , the questions below relate to determine the CUER in audit sampling for tst of control, using the following table :
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | |
ARACR (in percent ) | 10 | 5 | 5 | 5 | 5 | 5 | 5 | 5 |
Populations size | 5.000 | 5.000 | 5.000 | 5.000 | 500 | 900 | 5.000 | 500 |
Sample Size | 200 | 200 | 500 | 20 | 100 | 100 | 100 | 25 |
Number of exception | 4 | 4 | 1 | 4 | 2 | 10 | 0 | 0 |
Required
a. Using non statistical sampling calculated TER-SER for each of columns 1 through 8 and evaluate whether or not sampling error is large enough to accept the population. Assume that TER is 5% for each column
b. For each of the columns 1 through 8, determine CUER using attributes sampling from the appropriate table
c. Using your understanding of the relationship between the four preceding factors and the CUER, state the effect on the CUER ( Increase or decrease ) of changing each of the following factor while the other three held constants :
– A decrease in the ARACR
– A decrease in the population size
– A decrease in the sample size
– A decrease in the number of exceptions in the sample
d. Compare your answer in part with the results you determined in part a ( non statistical sampling ) or part b ( attribute sampling ). Which of the factor appears to have the greatest effect on the CUER ? which one appears to have the least effect ?click here find the answer
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