a.
State the appropriate population under which Person F should select its sample.
b.1
Describe the term “upper limit rate of deviation”.
b.2
State the conclusion provided by Person F regarding the Company T’s internal control.
b.3
Specify the type of risk that is Person F will be exposed to in this situation.
c.1
Describe the term “upper limit rate of deviation” by assuming that Person F has 2% of upper limit rate of deviation.
c.2
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
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.
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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Chapter E Solutions
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