# Register now to access 7 million high quality study materials (What's Course Hero?) Course Hero is the premier provider of high quality online educational resources. With millions of study documents, online tutors, digital flashcards and free courseware, Course Hero is helping students learn more efficiently and effectively. Whether you're interested in exploring new subjects or mastering key topics for your next exam, Course Hero has the tools you need to achieve your goals.

16 Pages

### Module_F

Course: ACCT 404, Spring 2011
School: Lee
Rating:

Word Count: 802

#### Document Preview

2011 McGraw-Hill/Irwin Copyright by The McGraw-Hill Companies, Inc. All rights reserved. Module F Attributes Sampling Learning Objectives 1. 2. 3. 4. 5. 6. 7. Identify the objectives of attributes sampling, define deviation conditions, and define the population for an attributes sampling application. Understand how various factors influence the size of an attributes sample. Determine the sample size for an...

Register Now

#### Unformatted Document Excerpt

Coursehero >> Tennessee >> Lee >> ACCT 404

Course Hero has millions of student submitted documents similar to the one
below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.

Course Hero has millions of student submitted documents similar to the one below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.
2011 McGraw-Hill/Irwin Copyright by The McGraw-Hill Companies, Inc. All rights reserved. Module F Attributes Sampling Learning Objectives 1. 2. 3. 4. 5. 6. 7. Identify the objectives of attributes sampling, define deviation conditions, and define the population for an attributes sampling application. Understand how various factors influence the size of an attributes sample. Determine the sample size for an attributes sampling application. Identify various methods of selecting an attributes sample. Evaluate the results of an attributes sampling application by determining the upper limit rate of deviation (ULRD). Define sequential sampling and discovery sampling and identify when these types of sampling applications would be used. Understand how to apply nonstatistical sampling to attributes sampling. MODF-2 Attributes Sampling Used to estimate the extent to which a characteristic (attribute) exists within a population Used in tests of controls Estimate the rate at which internal control policies or procedures are not functioning as intended (deviation conditions) Compare rate to some allowable rate (tolerable rate of deviation) MODF-3 Major Steps in attributes Sampling: Planning 1. Determine the objective of sampling Identify key controls that the auditor intends to rely upon 1. Define deviation conditions Instance in which control is not functioning as intended 1. Define the population Should reflect all potential applications of the control during the period being examined MODF-4 Major Steps in attributes Sampling: Performing 4. Determine sample size Sampling risk (Risk of overreliance) Expected rate of deviation Tolerable rate of deviation Population size (not applicable in most instances) 5. Select sample items For statistical sampling, use unrestricted random selection or systematic random selection Haphazard selection or block selection are not appropriate for statistical sampling 5. Measure sample items Perform appropriate test of controls Calculate sample rate of deviation = No. deviations sample size MODF-5 Sampling Risks Associated with Attributes Sampling Factors Affecting Sample Size MODF-6 Sample Sizes for Small Populations MODF-7 How to Determine Sample Size Select AICPA Sample Size table corresponding to desired risk of overreliance Identify row related to appropriate expected population deviation rate (EPDR) Identify column related to appropriate tolerable rate of deviation (TRD) Determine sample size at junction of row for EPDR and column for TRD Parameters Risk of overreliance = 5% Expected population deviation rate= 2% Tolerable rate of deviation = 7% Sample size = 88 MODF-8 Major Steps in attributes Sampling: Evaluating 7. Evaluate sample results Problem with sample rate of deviation is that it may result from a nonrepresentative sample Need to adjust sample rate of deviation for to control the risk of overreliance Calculate an Upper Limit Rate of Deviation (ULRD) MODF-9 Upper Limit rate of deviation (ULRD) There is a (1 minus risk of overreliance) probability that the true population rate of deviation is less than or equal to the ULRD There is a (risk of overreliance) probability that the true population rate of deviation exceeds the ULRD Example: ULRD = 6%, Risk of overreliance = 5% 95% probability 0% 5% probability 6% MODF-10 How to Determine the ULRD Select AICPA Sample Evaluation Table corresponding to desired risk of overreliance Identify row related to appropriate sample size If cannot locate exactly, round down to next lowest sample size Identify column related to number of deviations noted Determine ULRD at junction of row for sample size and column for deviations Parameters Sample size = 50 Risk of overreliance = 5% No. of deviations = 3 Sample rate of deviation 3 50 = 6% ULRD = 14.8% Sample rate of deviation = 6% Allowance for Sampling Risk = 8.8% MODF-11 Making the Decision If ULRD > Tolerable rate of deviation: Conclude that internal control is not functioning effectively Options Increase sample size in hopes of supporting planned level of control risk Increase level of control risk, leading to more effective substantive procedures (lower detection risk) MODF-12 Making the Decision If ULRD Tolerable rate of deviation Conclude that the internal control is functioning effectively Options Maintain planned level of control risk, leading to planned effectiveness of substantive procedures MODF-13 Sequential (Stop-or-Go Sampling) Select initial (smaller) sample and consider results Decision Rely on control; discontinue sampling Cannot rely on control Select additional items; make decision Discontinue sampling Advantage is that evidence may support reliance on control with a relatively small sample size Disadvantage is that auditor may continually extend the sample, creating inefficiencies MODF-14 Discovery Sampling Used when deviations from control are expected to be infrequent but very critical Allows the auditor to Determine the necessary sample size to find at least one example of a deviation if such deviations exist Determine the probability that the rate of occurrence of a deviation is less than a specific (low) level MODF-15 Nonstatistical attributes Sampling Sample size based on judgment Should be approximately the same as sizes for statistical sampling Selection may be block or haphazard Attempt to select a representative sample Evaluating Nonstatistical Results Calculate Sample rate of deviation Estimate an Allowance for Sampling Error Compare SRD to TRD If SRD>TRD reject sample If SRD<TRD Compare SR to EPRD IF SDR <EPRD Probably accept sample Can use tables for guidelines Remember, its auditor judgment! MODF-16
Find millions of documents on Course Hero - Study Guides, Lecture Notes, Reference Materials, Practice Exams and more. Course Hero has millions of course specific materials providing students with the best way to expand their education.

Below is a small sample set of documents:

Lee - ACCT - 404
AUDIT PROGRAM FOR ACCOUNTS RECEIVABLERisksThe accounts receivable listing or individual balances may be inaccurateAccounts receivable balances may not existAccounts receivable may not be collectibleBad debts write-offs may not be validSales transact
Lee - ACCT - 404
28th Nov. 2011Module 5, GDB 3RE: Ethics and the Auditor&quot;Ethics is extremely important in auditing or any other business. Most college professorswill explain the code of ethics in his or her profession. Ethics is a moral reasoning on what isright and
Lee - ACCT - 404
ACCT 404CHAPTER 8Acquisition and Expenditure CycleLEARNING OBJECTIVESReviewCheckpointsExercises, Problems,and Simulations1. Identify significant inherent risks in theacquisition and expenditure cycle.1432. Describe the acquisition and expendit
Lee - ACCT - 404
ACCT 404CHAPTER 11Completing the AuditLEARNING OBJECTIVESReviewCheckpointsExercises, Problems,and Simulations1.Describe the approach used to examine majorrevenue and expense accounts.1, 2, 3, 42.Identify procedures performed by auditors toev
Lee - ACCT - 404
McGraw-Hill/IrwinCopyright 2011 by The McGraw-Hill Companies, Inc. All rights reserved.Chapter 7 Revenue and Collection CycleLearning Objectives1.2.3.4.5.Discuss inherent risks related to the revenue and collection cyclewith a focus on improper
Lee - ACCT - 404
Chapter 09 - Production CycleCHAPTER 9Production CycleLEARNING OBJECTIVESReviewCheckpointsExercises, Problems,and Simulations1.Describe the production cycle, includingtypical source documents and controls.1, 2, 3, 4, 5422.Give examples of te
Lee - ACCT - 404
McGraw-Hill/IrwinCopyright 2011 by The McGraw-Hill Companies, Inc. All rights reserved.Chapter 10 Finance and Investment CycleLearning Objectives1. Describe the finance and investment cycle,including typical source documents and controls.2. Give exa
Lee - ACCT - 404
Chapter 12 - Reports on Audited Financial StatementsCHAPTER 12Reports on Audited Financial StatementsLEARNING OBJECTIVESReviewCheckpointsExercises, Problems,and Simulations1.Provide an overview of the types of reports thataccompany the entitys f
Lee - ACCT - 404
SOLUTIONS FOR MULTIPLE CHOICE-QUESTIONSLouwers, Ramsay, Sinason, &amp; Strawser 20051.23.a.b.c.d.e.IncorrectIncorrectIncorrectIncorrectCorrectThis is an attestation to the prize promoter's claims.This is an audit engagement to give an opinion on
Lee - ACCT - 404
Module F - Attributes SamplingMODULE FAttributes SamplingLEARNING OBJECTIVESReviewCheckpointsExercises, Problems,and Simulations1.Identify the objectives of attributes sampling,define deviation conditions, and define thepopulation for an attrib
University of Texas - M 427 K - 56930
gl&quot;t Pnta=t -y'1. [ *r'&quot;*t'lrw-=ah&quot; 2 tJ,+ v . ' - Lt/ , n t+\ A + - ) -f r'-^-_s+.cfw_i , &quot; -r+ l o , ( *-|'&quot; -,./.I o'J&quot;\5'l&quot;-3)^z-/t^-&quot;!1&quot;s|2i&quot;-s+\l^s(-F',/l^21S - f *&quot;_st. , tt,t^fi(l ri:;:,- s*-LL&lt;3s l &quot; ' s'. l&quot;= e
University of Texas - M 427 K - 56930
DeVry Chicago - COST ACCOU - 217
The Cost Analysis for Decision Making project is intended to be a comprehensive evaluation of the keyobjectives covered throughout this course. It will challenge you to apply your knowledge of costinformation when evaluating the decision to make or buy
DeVry Chicago - ACCT - 217
1. The Smart Company is preparing its cash budget for the month of June. The followinginformation is available concerning its accounts receivable: Estimated credit sales for June\$300,000 Actual credit sales for May 225,000 Estimated collections in June
Stanford - ELECTRICAL - 263
EE 261 The Fourier Transform and its ApplicationsFall 2011Problem Set NineDue Friday, December 91. (20 points) 2D Fourier TransformsFind the 2D Fourier Transforms of:(a) sin 2ax1 sin 2bx2(b) e2i(ax+by) cos(2cx)(c) cos(2 (ax + by ) Hint: Use the ad
Stanford - EE - 263
EE263 Summer 2010-11Laurent LessardEE263 homework 71. Some true/false questions. Determine if the following statements are true or false. For each statement,either provide a proof that it is always true, or a counterexample demonstrating that it may f
Stanford - EE - 263
EE 261 The Fourier Transform and itsApplications Fall 2011Problem Set SevenDue Friday, November 181. (20 points) Handels HallelujahIn this problem we will explore the eects of sampling with or without anti-aliasinglters. As we saw in lecture there i
Stanford - EE - 263
EE 261 The Fourier Transform and its ApplicationsFall 2006Final Exam SolutionsNotes:There are 7 questions for a total of 120 pointsWrite all your answers in your exam bookletsWhen there are several parts to a problem, in manycases the parts can be
Stanford - EE - 263
EE263 Autumn 2011-12Prof. S. LallEE263 homework problems1. A simple power control algorithm for a wireless network. First some background. We consider anetwork of n transmitter/receiver pairs. Transmitter i transmits at power level pi (which is positi
Stanford - EE - 263
EE263 Summer 2010-11Laurent LessardEE263 nal examIf you received this document via email, print out this page, sign it, and submit it with your completed nalexam. You may scan and email your nal if you like, but we prefer that you turn it in to the dr
Stanford - EE - 263
EE263 Summer 2010-11Laurent LessardEE263 homework 61. Optimal choice of initial temperature prole. We consider a thermal system described by an n-elementnite-element model. The elements are arranged in a line, with the temperature of element i at time
Stanford - EE - 263
EE263 Summer 2010-11Laurent LessardEE263 homework 51. Curve-smoothing. We are given a function F : [0, 1] R (whose graph gives a curve in R2 ). Our goalis to nd another function G : [0, 1] R, which is a smoothed version of F . Well judge the smoothed
Stanford - EE - 263
EE263Dec. 89 or Dec. 910, 2006.Prof. S. BoydFinal exam solutions1. Analysis and optimization of a communication network. A communication networkis modeled as a set of m directed links connecting nodes. There are n routes in thenetwork. A route is a
Stanford - EE - 263
EE 261 The Fourier Transform and itsApplicationsFall 2011Problem Set Six Due Friday, November 111. (35 points) Frequency Modulation and MusicA frequency modulated (FM) signal is one whose frequency is a function of time:x(t) = A cos(2f (t).FM signa
Stanford - EE - 263
EE 261 The Fourier Transform and its ApplicationsFall 2007Solutions to Midterm Exam There are 5 questions for a total of 110 points. Please write your answers in the exam booklet provided, and make sure that your answersstand out. Dont forget to wri
Stanford - EE - 263
EE 261 The Fourier Transform and itsApplicationsFall 2010Midterm ExamOctober 27, 2010 There are ve questions for a total of 75 points. Please write your answers in the exam booklet provided, and make sure that youranswers stand out. Dont forget to
Stanford - EE - 263
EE 261 The Fourier Transformand its Applicationscn =T1Te2int/T f (t) dt =0Te2int/T e2imt/T dt =0Integration by parts:be2int/T f (t) dtT /20,T,n=mn=mThe normalized exponentials (1/ T )e2int/T , n =0, 1, 2, . . . form an orthonormal basi
Stanford - EE - 263
EE 261 The Fourier Transform and its ApplicationsFall 2010Solutions to Problem Set Four1. (10 points) Solving the wave equationAn innite string is stretched along the x-axis and is given an initial displacement describedby a function f (x). It is the
Stanford - EE - 263
EE 261 The Fourier Transform and its ApplicationsFall 2011Solutions to Problem Set Three1. (5 points) Equivalent width: Still another reciprocal relationshipThe equivalent width of a signal f (t), with f (0) = 0, is the width of a rectangle having hei
Stanford - EE - 263
EE 261 The Fourier Transform and its ApplicationsFall 2011Solutions to Problem Set Two1. (30 points) Convolution, Autocorrelation and Fourier SeriesRecall the convolution of two functions f (t) and g (t) of period 1 is dened by1(f g )(t)f ( )g (t )
Stanford - EE - 263
EE 261 The Fourier Transform and its ApplicationsFall 2011Solutions to Problem Set One1. Some practice combining simple signals. (5 points each)The (scaled) triangle function with a parameter a &gt; 0 is11 a |t| ,0,a (t) = (t/a) =|t| a|t| &gt; aThe g
Stanford - EE - 263
EE 261 The Fourier Transform and its ApplicationsDirections for using sinsum2sinesum2 is a Matlab application that allows you to experiment with sums of the formNAn sin(2nt + n ) .n=1You rst choose the number of harmonics, N , and then you can adjus
Stanford - EE - 263
EE263 Autumn 2011-12Prof. S. BoydEE263 homework problemsLecture 2 Linear functions and examples2.1 A simple power control algorithm for a wireless network. First some background. We consider anetwork of n transmitter/receiver pairs. Transmitter i tra
Stanford - EE - 263
EE 261 The Fourier Transform and its ApplicationsFall 2011Problem Set One Due Wednesday, October 51. Some practice combining simple signals. (5 points each)The (scaled) triangle function with a parameter a &gt; 0 is11 a |t| ,0,a (t) = (t/a) =|t| a|
Stanford - EE - 263
Lecture Notes for EE263Stephen BoydIntroduction to Linear Dynamical SystemsAutumn 2010-11Copyright Stephen Boyd. Limited copying or use for educational purposes isne, but please acknowledge source, e.g., taken from Lecture Notes for EE263,Stephen Bo
Stanford - EE - 263
Contents1 Fourier Series11.1Introduction and Choices to Make . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11.2Periodic Phenomena . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21.3Periodicity: De
University of Phoenix - ACC - 225
Running head: ANALYZING FINANCIAL STATEMENTS1Analyzing Financial StatementsAmanda KelleyACC/225November 11, 2011Jason JonesANALYZING FINANCIAL STATEMENTS2Analyzing Financial StatementsIt is important for every business to have financial statemen
Purdue - MGMT - 200
First name: _Last name: _PUID: _Purdue UniversityKrannert School of ManagementMGMT 200 Introductory Financial AccountingSpring 2010Exam 1 February 23, 2010 - SOLUTIONThis exam consists of 4 questions on 12 pages (excluding this cover page) for a t
Purdue - MGMT - 200
First name: _Last name: _PUID: _Purdue UniversityKrannert School of ManagementMGMT 200 Introductory Financial AccountingSpring 2010Exam 2 March 30, 2010 - SOLUTIONThis exam consists of 4 questions on 11 pages (excluding this cover page) for a tota
Purdue - MGMT - 200
LAST NAME: _ FIRST NAME_PUID_Please write your name in BLOCK letters and in the format: Last name, First name.Management 20000 Introductory Financial Accounting Spring 2010Krannert School of Management - Purdue UniversityHomework 1 due Friday, January
Purdue - MGMT - 200
LAST NAME: _ FIRST NAME_PUID_Please write your name in BLOCK letters and in the format: Last name, First name.Management 20000 Introductory Financial Accounting Spring 2010Krannert School of Management - Purdue UniversityHomework 1 due Friday, January
Purdue - MGMT - 200
LAST NAME: _ FIRST NAME_PUID_Please write your name in BLOCK letters and in the format: Last name, First name.Management 200 Introductory Financial Accounting Spring 2010Krannert School of Management - Purdue UniversityHomework 2 due Wednesday, Februa
Purdue - MGMT - 200
LAST NAME: _ FIRST NAME_PUID_Please write your name in BLOCK letters and in the format: Last name, First name.Management 200 Introductory Financial Accounting Spring 2010Krannert School of Management - Purdue UniversityHomework 2 due Wednesday, Februa
Purdue - MGMT - 200
LAST NAME: _ FIRST NAME_PUID_Please write your name in BLOCK letters and in the format: Last name, First name.Management 200 Introductory Financial Accounting Spring 2010Krannert School of Management - Purdue UniversityHomework 3 due Wednesday, Februa
Purdue - MGMT - 200
LAST NAME: _ FIRST NAME_PUID_Please write your name in BLOCK letters and in the format: Last name, First name.Management 200 Introductory Financial Accounting Spring 2010Krannert School of Management - Purdue UniversityHomework 3 due Wednesday, Februa
Purdue - MGMT - 200
LAST NAME: _ FIRST NAME_PUID_Please write your name in BLOCK letters and in the format: Last name, First name.Management 200 Introductory Financial Accounting Spring 2010Krannert School of Management - Purdue UniversityHomework 4 due Wednesday, March
Purdue - MGMT - 200
LAST NAME: _ FIRST NAME_PUID_Please write your name in BLOCK letters and in the format: Last name, First name.Management 200 Introductory Financial Accounting Spring 2010Krannert School of Management - Purdue UniversityHomework 4 due Wednesday, March
Purdue - MGMT - 200
LAST NAME: _ FIRST NAME_PUID_Please write your name in BLOCK letters and in the format: Last name, First name.Management 200 Introductory Financial Accounting Spring 2010Krannert School of Management - Purdue UniversityHomework 5 due Friday, March 26,
Purdue - MGMT - 200
LAST NAME: _ FIRST NAME_PUID_Please write your name in BLOCK letters and in the format: Last name, First name.Management 200 Introductory Financial Accounting Spring 2010Krannert School of Management - Purdue UniversityHomework 5 due Friday, March 26,
alfaisal.edu - ECON - 101
Homework 31. Consider an abrupt p-n diode - made of an unknownsemiconductor - in thermal equilibrium with as many donors inthe n-type region as acceptors in the p-type region and amaximum electric field of -13 kV/cm and a total depletion layerwidth o
alfaisal.edu - ECON - 101
Homework 41. A high-frequency capacitance voltage measurement of a siliconMOS structure was fitted by the following expression:C(VG) = 6 pF + 12 pF/(1 + exp(3VG)a) Calculate the oxide capacitance per unit area and the oxidethickness. The area of the
LSU - MKT - 3401
MKT 3401 Spring 2006 Exam #3Exam #3 StatisticsThe following question proved to be overwhelmingly problematic with approximately 70% of youanswering incorrectly and, as a result, everyone received credit for this question:When a product is in the growt
LSU - MKT - 3401
LSU - MKT - 3401
TestQuestion1:Whatarethe4categoriesofproducts?1. ProductsofConveniencelowinvolvement,low\$,lowrisk2. Shoppingalittlehigherinvolvement,stuffyoureallyshouldlookaroundfor&amp;doinfo searchlikeclothes3. Specialtymorelikenichegroup,prodsmorebranded,satisfyMaslo
LSU - MKT - 3401
Exam Practice #3Multiple ChoiceIdentify the letter of the choice that best completes the statement or answers the question.Exam Practice #3E1. In 2004, the movie company that produced The Bourne Supremacy usedadvertising, personal selling, public re
LSU - MKT - 3401
Exam 3 study guide:Chapter 14:1. What is promotion strategy?2. What are the 4 promotional mixes?3. What is advertising and what are the various advertising media? Their advantagesand disadvantages.4. What is public relations and its characteristics?
LSU - MKT - 3401
Chapter 1: What is Marketing?What is marketing?o Marketing is the organizational function and a set of processes for creating, communicating, anddelivering value to customers and for managing customer relationships in ways that benefit theorganization
LSU - MKT - 3401
Marketing 3401 Fall 2005Final Exam ReviewChapters 1 through 20Chapter 1: An Overview of MarketingFALSE True or False?This shows a strong productionorientationFord, founder of of theMotorHenry given the focus Ford firmscapabilitiesonce said about h
LSU - MKT - 3401
Marketing 3401 Exam 1 ReviewChapter 1:1. What is marketing?a. An organizational function and a set of processes for creating,communicating, and delivering value to customers and for managingcustomer relationships in ways that benefit the organization
LSU - MKT - 3401
MKT 3401 Assignment #21 Coca-Cola is on of the worlds largest manufacturers of beverages. It makes over 2,800 different beverageproducts, including sparkling drinks, waters, juices, juice drinks, teas, coffees, sports drinks, and energy drinks.The grea
LSU - MKT - 3401
3401_Final exam3 : Practice QuestionsTrue/FalseIndicate whether the sentence or statement is true or false._1. Marketers typically use either a push or a pull strategy exclusively._2. A person buying a Valentine's Day gift for his significant other is