Auditing & Assurance Services
Auditing & Assurance Services
6th Edition
ISBN: 9780077862343
Author: LOUWERS, Timothy J.
Publisher: Mcgraw-hill Education,
Question
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Chapter F, Problem 72EP

a.

To determine

Identify the factors that are required for Mr D to establish the risk of overreliance, expected population deviation rate, and tolerable rate of division.

b.

To determine

Assume that Mr D put additional reliance on the control then explain the effect on the parameters above mentioned.

c.

To determine

Use AICPA sample size tables to verify the appropriate sample size.

d.

To determine

Mention the sample size for (c) and inspect four deviations along with the sample rate of division.

e.

To determine

As per AICPA sample evaluation tables verify the upper limit rate of deviation.

f.

To determine

State the Mr D’s conclusion regarding the functioning of the control.

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