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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
the attribute being tested Confidence
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
(7) First year the auditor audited an entity.
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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.
- Fall '08