L11 Notes_Part_15 - Rate(UDR To Step 11 From Step 8 Compare...

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Risks Associated with Attribute Sampling Auditor's Decision Based on Sample Evidence Reliable Not Reliable True State of Internal Control Correct decision Risk of incorrect rejection (Type I) Supports the planned level of control risk Does not support the planned level of control risk Risk of incorrect acceptance (Type II) Correct decision
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Summary of Audit Sample Steps PLAN THE SAMPLE (Steps 1-5) PULL THE SAMPLE (Step 6) PERFORM THE TESTS (Step 7) EVALUATE THE RESULTS (Steps 8-11) Number of exceptions in sample and actual sample size To Step 8 Computer Upper Deviation
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Unformatted text preview: Rate (UDR) To Step 11 From Step 8 Compare To/From Step 4 Attribute Sampling Example The auditor has decided to test a control at Calabro Paging Services. The test is to determine the sales and service contracts are properly authorized for credit approval. A deviation in this test is defined as the failure of the credit department personnel to follow proper credit approval procedures for new and existing customers. Here is information relating to the test: Desired confidence level 95% Tolerable deviation rate 6% Expected population deviation rate 1% Sample size 78...
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L11 Notes_Part_15 - Rate(UDR To Step 11 From Step 8 Compare...

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