Case 9.6 Part A

Case 9.6 Part A - Case 9.6 Part A GROUP, PLEASE FEEL FREE...

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Case 9.6 Part A GROUP, PLEASE FEEL FREE TO ADD WHAT YOU FEEL IS NEEDED TO OUR CASE. I JUST WANTED TO SEND THIS TO GET US AHEAD OF THE GAME. 1a.) I do not believe that it is acceptable to directly use the same transactions and sample size for the first two tests of controls. I would say that sample size randomly chosen would be appropriate for the first test of controls, because based on the moderate importance and the tolerance and estimated deviation allocated by Garrett and Schulzke the sample size works. For the second test of controls with the difference in the estimated deviation, the sample size for this test increases to 77. Although the re- selection of a sample size may be time costly, it allows the auditor, Darrell, to see more transactions thus reducing bias and allowance of exceptions. b.) I do not completely agree with Darrell’s conclusions with the conditions of the tests he performed. For the first test of controls, based on the attribute sampling evaluation table, it is acceptable to deem a control as operating effectively if you find one
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Case 9.6 Part A - Case 9.6 Part A GROUP, PLEASE FEEL FREE...

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