3 expected exception rate no exceptions should be

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Unformatted text preview: . Expected Exception Rate. No exceptions should be accepted. 3. Materiality. Using attribute testing. monetary materiality, or tolerable misstatement is not a necessary input for determining sample size. B. Sample Size Table. Using the preferences above and an attribute sampling software program, if a high level of assurance is defined as 90 percent confidence and tolerable exception rate is 5 or 10 percent with an expectation of zero exceptions, the sample size is 48 or 23 (respectively for 5 and 10 percent exception rates), which is rounded to 50 and 25 below. Similarly, using 95 percent confidence, zero exceptions, and a 5 or 10 percent tolerable exception rate, the sample size is 64 or 32, which is rounded to 65 and 35 below. Compliance sample size table Importance/significance of the attribute being tested Confidence level Tolerable rate Minimum sample size for populations over 200 Low 90% 5% 50 Low 90% 10% 25 High 95% 5% High 95% 10% I 65 35 This table is illustrative but does not replace professional judgment. As noted in the table, these are minimum sample sizes, and there may be many situations in which the auditor should also consider qualitative factors when determining sample size. Such qualitative factors may include but are not limited to (1) (2) (3) (4) (5) (6) (7) First year the auditor audited an entity. Larger, decentralized...
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This note was uploaded on 01/27/2014 for the course ACCY 405 taught by Professor Staff during the Fall '08 term at University of Illinois, Urbana Champaign.

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