AUDITING+ASSURANCE SERVICES-CONNECT >I<
AUDITING+ASSURANCE SERVICES-CONNECT >I<
8th Edition
ISBN: 9781265005405
Author: LOUWERS
Publisher: INTER MCG
Question
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Chapter E, Problem 74EP

a.

To determine

State the appropriate population under which Person F should select its sample.

b.1

To determine

Describe the term “upper limit rate of deviation”.

b.2

To determine

State the conclusion provided by Person F regarding the Company T’s internal control.

b.3 

To determine

Specify the type of risk that is Person F will be exposed to in this situation.

c.1

To determine

Describe the term “upper limit rate of deviation” by assuming that Person F has 2% of upper limit rate of deviation.

c.2

To determine

State the conclusion provided by Person F regarding the Company T’s internal control by assuming that Person F has 2% of upper limit rate of deviation.

c.3 

To determine

Specify the type of risk that is Person F will be exposed to in this situation by assuming that Person F has 2% of upper limit rate of deviation.

d.

To determine

State the manner by which the likelihood of relying on Company T’s internal control will be affected if the Person F is willing to accept the risk of over-reliance of 10%.

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