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 34DQP

a.

To determine

Identify the observations are as exception.

b.

To determine

Describe the reasons for setting up of single acceptable TER and EPER for the combined exceptions.

c.

To determine

Calculate SER for each attribute tested in the population.

d.

To determine

Calculate TER – SER for each attribute and evaluate whether the calculated allowance for sampling risk is sufficiently large agreed the 5% ARO assuming TER is 6% for each attribute.

e.

To determine

Identify the appropriate analysis of exceptions for each of the exceptions in the sample, including additional procedures to be performed

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