Auditing and Assurance Services, Student Value Edition (16th Edition)
Auditing and Assurance Services, Student Value Edition (16th Edition)
16th Edition
ISBN: 9780134075754
Author: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
Publisher: PEARSON
Question
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Chapter 15, Problem 31DQP

a.

To determine

Compute the TER- SER using non-statistical sampling and also determine whether or not the computed allowance sampling risk is sufficient to accept the population.

b.

To determine

Compute the CUER by using the attribute sampling.

c.

To determine

Identify the effect of Computer Upper Exception Rate (CUER) while changing each factor and keeping the other factors constant.

d.

To determine

Identify the factors that have a great and lowest effect on CUER by comparing them with requirement a, b and c.

e.

To determine

Explain the necessity of comparing CUER with Tolerable Exception Rate (TER).

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