WEEK 3 HOMEWORK, Bburt - Week 3 Homework Auditing 1 1M...

Week 3 Homework
Auditing 1 – 1M
Beverly Burt
June 4, 2017
Everest University
Instructor: Professor Battaglia
Instructions:
Using a word processing program, write a two-to-three-page response to the following:
 8-43, Attributes Sampling Results
 8-45, Attributes Sampling Scenario
 9-69, Bert Finney, CPA Scenario
 9-71, KC Enterprises Scenario
pg. 1

Week 3 Homework
Problem 8-43:
Practice evaluating the results of attributes sampling by using the tables in Exhibit 8.6 and the
following combinations of inputs. Assume the tolerable deviation rate is 12%. For each item
labeled a. through f. below, state your interpretation of the result, including the appropriate
conclusion about whether the control is operating effectively. For those situations when no
deviations are detected in the sample, comment on why the upper limit of deviation is greater
than zero.
Risk of Overreliance Sample Size Number of
Deviations
Upper limit of
Deviations
5% 20 0 14.0%
5% 75 5 13.6%
5% 150 10 11.1%
10% 20 0 10.9%
10% 75 5 12.1%
10% 150 10 10.1%
pg. 2

Week 3 Homework