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Unformatted text preview: uggested minimum sample sizes, and there may be
quantitative factors used to determine the sample size to be used.
D. Testing and Evaluating Results. The sample sizes in the table above are based
on an expectation of no exceptions. If the testing performed discovers no
exceptions. the auditor has achieved a high degree of confidence that the
attribute/assertion is performed at an acceptable level.
If there are observed exceptions, the auditor should investigate the nature and cause
of the exceptions to determine whether the exceptions are immaterial or material
compliance findings, significant deficiencies, or material weaknesses in internal
control. It is not necessary to expand testing when exceptions are found. All
exceptions must be reported. Refer to paragraph 1 -7C and chapter 2 for reporting
requirements using this audit guide.
In cases in which an exception is found, the auditor must determine whether the
individual exception is material enough to include or is a compliance violation that
must be included in the report. If it is determined that an exception is not material
enough to report and is not a compliance issue that must be reported as a finding,
the auditor may want to apply additional procedures to evaluate the magnitude of
The auditor should consider whether the lack of an effective internal control
constitutes a significant deficiency or a material weakness and document the basis
for an unqualified opinion if a finding is determined to be a significant deficiency or
E. Work Paper Documentation...
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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