Unformatted text preview: accurate. 4. Tom does not state why he chose April and August to sample for payroll checks. a. Tom may need to increase the control frequency compared to the population, if he knew what the population size was from the beginning. 5. With a sample size of 100, Tom found zero deviations. The upper limit rate of deviation at 5%, risk of overreliance of 3% and tolerable rate of deviation 5%. a. Tom needs to reduce reliance on internal controls and increase control risk. b. Also, Tom needs to expand the sample size to have the upper limit rate of deviation to be less than the tolerable rate of deviation....
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This note was uploaded on 10/27/2011 for the course ACCT 4263 taught by Professor Chaplin during the Fall '11 term at Fairleigh Dickinson.
- Fall '11