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 1 5% 4% 18 156 156 Does support 0 156 Control Procedure 2 00 5% 5% 2% 00% 2.00 % 0.00% 181 181 3 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. 10% 7% 3% 94 94 2 Does not support 4 5 181 O 2.8 % 18% 6.90% 0.00% 8% 4% 98 98 Control Procedure 3 4 94 43% 8.76 % 0.00% Does not support Does support 3 980 3.10 % 7.3 00000 0.00%

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

am. 271.

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
5%
4%
18
156
156
Does support
0
156
Control Procedure
2
00%
20 %
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.
5%
5%
2%
0.00%
181
181
3
10%
7%
3%
94
94
2
4
10%
8%
5
181
2.80 %
6.90 %
0.00%
Does not support
98
98
Control Procedure
4
94
Does not support
%
8.7%
0.00%
Does support
3
98
3.1
%
7.3 %
0.0
%
30
Transcribed Image Text: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 5% 4% 18 156 156 Does support 0 156 Control Procedure 2 00% 20 % 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. 5% 5% 2% 0.00% 181 181 3 10% 7% 3% 94 94 2 4 10% 8% 5 181 2.80 % 6.90 % 0.00% Does not support 98 98 Control Procedure 4 94 Does not support % 8.7% 0.00% Does support 3 98 3.1 % 7.3 % 0.0 % 30
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Knowledge Booster
Property Rights, Bargaining And The Coase Theorem
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education