Chapter 08 Problem 8-26 LO 8-6Use the sample sizes and the number of deviations determined below.ParametersRisk of incorrect acceptanceTolerable deviation rate.Expected population deviation rateSample size (using tables).Sample size (using IDEA)ResultsNumber of deviationsSample sizeSample deviation rate -Computed upper deviation rate usingTables1-Sided upper limit using IDEAAuditor's conclusion5%4%18156156Does support0156Control Procedure200%20 %Determine the sample deviation rate, the computed upper deviation rate, and the auditor's conclusion (ie, 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)Note: Round your rates values to 1 decimal place.5%5%2%0.00%181181310%7%3%94942410%8%51812.80 %6.90 %0.00%Does not support9898Control Procedure494Does not support%8.7%0.00%Does support3983.1%7.3 %0.0%30

Chapter 08 Problem 8-26 LO 8-6 Use the sample sizes and the number of deviations determined below. 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 Computed upper deviation rate using Tables 1-Sided upper limit using IDEA Auditor's conclusion 54 4% 1N 156 156 Does support Control Procedure 2 0 156 54 5% 2% 0 % 2.00 % 0.00% 181 181 Determine the sample deviation rate, the computed upper deviation rate, and the auditor's conclusion (ie, 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) Note: Round your rates values to 1 decimal place. 3 10% 7% 3% 94 94 Does not support 4 10% 8% 4% 5 181 2.8 % 98 98 Control Procedure 6.90% 0.00% 4 940 4.3 8.76 0.00% Does not support % % Does support 3 98 O 3.1 % 7.30% 0.0 %

Chapter 08 Problem 8-26 LO 8-6 Use the sample sizes and the number of deviations determined below. 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 Computed upper deviation rate using Tables 1-Sided upper limit using IDEA Auditor's conclusion 54 4% 1N 156 156 Does support Control Procedure 2 0 156 54 5% 2% 0 % 2.00 % 0.00% 181 181 Determine the sample deviation rate, the computed upper deviation rate, and the auditor's conclusion (ie, 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) Note: Round your rates values to 1 decimal place. 3 10% 7% 3% 94 94 Does not support 4 10% 8% 4% 5 181 2.8 % 98 98 Control Procedure 6.90% 0.00% 4 940 4.3 8.76 0.00% Does not support % % Does support 3 98 O 3.1 % 7.30% 0.0 %

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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Question 8 X 35 36 37 38 39 Required Use the above data to find the variance and standard deviation Another Solution X 35 P(X) 0.1 0.2 0.3 0.3 0.1 36 37 38 39 P(X) 0.1 0.2 0.3 0.3 0.1 +
STATEMENT 1: The choice between a statistical and a nonstatistical sampling plan is based primarily on the auditor's assessment of the relative costs and benefits. STATEMENT 2: The choice between a statistical and a nonstatistical sampling plan is made independent of the selection of audit procedures. A. Only Statement 1 is incorrect B. Only Statement 1 is correct C. Both statements are incorrect D. Both statements are correct
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