Chapter 08 Problem 8-26 LO 8-6Use the sample sizes and the number of deviations determined below.Control Procedure235%10 %5%7%2%3 %ParametersRisk of incorrect acceptanceTolerable deviation rateExpected population deviation rateSample size (using tables)Sample size (using IDEA)ResultsNumber of deviationsSample sizeSample deviation rate15 %4%1 %Computed upper deviation rate using Tables1-Sided upper limit using IDEAAuditor's conclusion156156181181Does supportDetermine the sample deviation rate, the computed upper deviation rate, and the auditor's conclusion (i.e., testing results do or do notsupport operating effectiveness of the control) for each control procedure. (For Results, use Table 8-8 & Table 8-9 or IDEA) (Roundyour rates values to 1 decimal place.)0156✔02.0✓✔9494%%%410%8%4%9898X Answer is not complete.Control Procedure2Does not support5181✔2.86.9✓%%%3Does not support494✔4.38.73 333%%%4Does support398✔✔3.1 %7.3 %%✓

Chapter 08 Problem 8-26 LO 8-6 Use the sample sizes and the number of deviations determined below. Control Procedure 2 3 5 % 10 % 7% 3% Parameters Risk of incorrect acceptance Tolerable deviation rate Expected population deviation rate Sample size (using tables) Sample size (using IDEA) Results Number of deviations Sample size Sample deviation rate 1 5 % 4% 1 % Computed upper deviation rate using Tables 1-Sided upper limit using IDEA Auditor's conclusion 156 156 1 5% 2% Does support 181 181 Determine the sample deviation rate, the computed upper deviation rate, and the auditor's conclusion (l.e., testing results do or do not support operating effectiveness of the control) for each control procedure. (For Results, use Table 8-8 & Table 8-9 or IDEA) (Round your rates values to 1 decimal place.) 0 156✔ 0 2.0 ✔ 94 94 % % % 4 10% 8% 98 98 > Answer is not complete. Control Procedure 2 Does not support 5 181✔ 2.8 6.9 ✓ % % % 3 Does not support 4 94✔ 4.3 8.7 ✓ % % % 4 Does support 3 98✔ 3.1 % 7.3 % %

Chapter 08 Problem 8-26 LO 8-6 Use the sample sizes and the number of deviations determined below. Control Procedure 2 3 5 % 10 % 7% 3% Parameters Risk of incorrect acceptance Tolerable deviation rate Expected population deviation rate Sample size (using tables) Sample size (using IDEA) Results Number of deviations Sample size Sample deviation rate 1 5 % 4% 1 % Computed upper deviation rate using Tables 1-Sided upper limit using IDEA Auditor's conclusion 156 156 1 5% 2% Does support 181 181 Determine the sample deviation rate, the computed upper deviation rate, and the auditor's conclusion (l.e., testing results do or do not support operating effectiveness of the control) for each control procedure. (For Results, use Table 8-8 & Table 8-9 or IDEA) (Round your rates values to 1 decimal place.) 0 156✔ 0 2.0 ✔ 94 94 % % % 4 10% 8% 98 98 > Answer is not complete. Control Procedure 2 Does not support 5 181✔ 2.8 6.9 ✓ % % % 3 Does not support 4 94✔ 4.3 8.7 ✓ % % % 4 Does support 3 98✔ 3.1 % 7.3 % %

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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