GEN COMBO LL PRINCIPLES OF AUDITING & OTHER ASSURANCE SERVICES; CONNECT AC
GEN COMBO LL PRINCIPLES OF AUDITING & OTHER ASSURANCE SERVICES; CONNECT AC
21st Edition
ISBN: 9781260427202
Author: Ray Whittington, Kurt Pany
Publisher: McGraw-Hill Education
Question
Book Icon
Chapter 9, Problem 41OQ

a.

To determine

Calculate the planned assessed level of control risk.

b.

To determine

Calculate the appropriate sample size and an allowable number of deviations using figure 9.4.

c.

To determine

Estimate the achieved upper deviation rate and suggest the assessed level of control risk for the given circumstances.

Blurred answer
Students have asked these similar questions
You are an audit supervisor of Ali & Babs partners and you are planning the audit of Little Angel Corporation, a listed company, for the year ending 31 March 2020. The company manufactures computer components and forecast profit before tax is GH¢33·6m and total assets are GH¢79·3m.Little Angel Corporation distributes its products through wholesalers as well as via its own website. The website was upgraded during the year at a cost of GH¢1·1m. Additionally, the company entered into a transaction in February to purchase a new warehouse which will cost GH¢3·2m. Little Angel Corporation’s legal advisers are working to ensure that the legalprocess will be completed by the year end. The company issued $5m of irredeemable preference shares to finance the warehouse purchase.During the year the finance director has increased the useful economic lives of fixtures and fittings from three to four years as he felt this was a more appropriate period. The finance director has informed the…
You are an audit supervisor of Ali & Babs partners and you are planning the audit of Little Angel Corporation, a listed company, for the year ending 31 March 2020. The company manufactures computer components and forecast profit before tax is GH¢33·6m and total assets are GH¢79·3m.Little Angel Corporation distributes its products through wholesalers as well as via its own website. The website was upgraded during the year at a cost of GH¢1·1m. Additionally, the company entered into a transaction in February to purchase a new warehouse which will cost GH¢3·2m. Little Angel Corporation’s legal advisers are working to ensure that the legal process will be completed by the year end. The company issued $5m of irredeemable preference shares to finance the warehouse purchase.During the year the finance director has increased the useful economic lives of fixtures and fittings from three to four years as he felt this was a more appropriate period. The finance director has informed the…
A CPA’s client, Boos & Baumkirchner, Inc., is a medium-sizemanufacturer of products for the leisure-time activities market (camping equipment,scuba gear, bows and arrows, and so forth). During the past year, a computer system wasinstalled and inventory records of finished goods and parts were converted to computerprocessing. The inventory master file is maintained on a disk. Each record of the filecontains the following information:• Item or part number • Total value of inventory on hand at cost• Description • Date of last sale or usage• Size • Quantity used or sold this year• Unit-of-measure code • Economic order quantity• Quantity on hand • Code number of major vendor• Cost per unit • Code number of secondary vendorIn preparation for year-end inventory, the client has two identical sets of preprintedinventory count cards. One set is for the client’s inventory counts, and the other is for theCPA’s use to make audit test counts. The following information is on each card:• Item or…
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Essentials of Business Analytics (MindTap Course ...
Statistics
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Cengage Learning
Text book image
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
Text book image
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Text book image
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub
Text book image
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning