EBK AUDITING & ASSURANCE SERVICES: A SY
10th Edition
ISBN: 9781259293245
Author: Jr
Publisher: MCGRAW HILL BOOK COMPANY
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Chapter 8, Problem 8.30P
a
To determine
Introduction:
Non-statistical sampling test of control: The difference between non-statistical and statistical sampling is mainly in the selection of
Under the non-statistical sampling method, the sample size is determined based on personal experience and knowledge of the auditor and guidance in audit firm policy. All the major available sample selection methods can be used for selection of sample.
The amount of allowance for sampling risk included in the computed upper deviation rate of 7.8%
b
To determine
Introduction:
Non-statistical sampling test of control: The difference between non-statistical and statistical sampling is mainly in the selection of sample size and calculating the computed upper deviation rate.
Under the non-statistical sampling method, the sample size is determined based on personal experience and knowledge of the auditor and guidance in audit firm policy. All the major available sample selection methods can be used for selection of sample.
The justification of an increase in sample size, increase or adjustment in the preliminary assessment of control risk
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Select the necessary words from the list of possibilities to complete the following statements.
1.
2.
7.
Inherent in the use of sampling is
representative of the population.
9.
When the auditors estimate sampling risk using professional judgment rather than by using the laws of
probability, they are said to be using.
sampling.
an item from the population may be selected two or more times for inclusion in the
When using
sample.
The term
3.
4.
5. In performing tests of controls, the auditors are primarily concerned with the risk of assessing
6.
To use attributes sampling tables, the auditors must stipulate the desired risk of assessing control risk too low,
the expected deviation rate in the population, and the desired
Statements
risk which is the possibility of selecting a sample that i not
refers to the process of dividing a population into relatively homogeneous subgroups.
sampling is usually used in situations in which the auditors expect a very low rate of occurrence of
some…
Using AICPA sample evaluation tables, determine the conclusion from a statistical sampleof internal controls when a sample of 125 documents indicates five deviations if the tolerablerate of deviation is 5 percent, the expected population deviation rate is 2 percent, and theallowance for sampling risk is 3 percent.a. Accept the evidence as support for assessing a low control risk because the tolerable rateof deviation less the allowance for sampling risk is less than the expected populationdeviation rate.b. Use the evidence to assess a higher control risk than planned because the sample rate ofdeviation plus the allowance for sampling risk exceeds the tolerable rate of deviation.c. Use the evidence to assess a higher control risk than planned because the tolerable rate ofdeviation plus the allowance for sampling risk exceeds the expected population deviationrate.d. Accept the evidence as support for assessing a low control risk because the sample rate ofdeviation plus the allowance for…
K
Conduct a test at the α = 0.05 level of significance by determining (a) the null and alternative hypotheses, (b) the test statistic, and (c) the P-value. Assume the samples were obtained independently
from a large population using simple random sampling.
Test whether p₁> P2. The sample data are x₁ = 116, n₁ = 244, x2 = 132, and n₂ = 313.
(a) Choose the correct null and alternative hypotheses below.
OA. Ho P1 P2 versus H₁: P1 P2
OB. Ho P₁ P2 versus H₁: P₁ P2
OD. Ho p₁ =0 versus H₁:.p₁ #0
(b) Determine the test statistic.
Zo=
(Round to two decimal places as needed.)
(c) Determine the P-value.
The P-value is
(Round to three decimal places as needed.)
What is the result of this hypothesis test?
OA. Do not reject the null hypothesis because there is not sufficient evidence to conclude that p₁ #p2-
OB. Do not reject the null hypothesis because there is not sufficient evidence to conclude that p₁ P2-
OD. Reject the null hypothesis because there is sufficient evidence to conclude that p₁…
Chapter 8 Solutions
EBK AUDITING & ASSURANCE SERVICES: A SY
Ch. 8 - Prob. 8.1RQCh. 8 - Prob. 8.2RQCh. 8 - Prob. 8.3RQCh. 8 - Prob. 8.4RQCh. 8 - Prob. 8.5RQCh. 8 - Prob. 8.6RQCh. 8 - Prob. 8.7RQCh. 8 - Prob. 8.8RQCh. 8 - Prob. 8.9RQCh. 8 - Prob. 8.10RQ
Ch. 8 - Prob. 8.11MCQCh. 8 - Prob. 8.12MCQCh. 8 - Prob. 8.13MCQCh. 8 - Prob. 8.14MCQCh. 8 - Prob. 8.15MCQCh. 8 - Prob. 8.16MCQCh. 8 - Prob. 8.17MCQCh. 8 - Prob. 8.18MCQCh. 8 - Prob. 8.19MCQCh. 8 - Prob. 8.20MCQCh. 8 - Prob. 8.21PCh. 8 - Prob. 8.22PCh. 8 - Prob. 8.23PCh. 8 - Prob. 8.24PCh. 8 - Prob. 8.25PCh. 8 - Prob. 8.26PCh. 8 - Prob. 8.27PCh. 8 - Prob. 8.28PCh. 8 - Prob. 8.29PCh. 8 - Prob. 8.30PCh. 8 - Prob. 8.31P
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