EARTHWEAR CLOTHIERS Control Activities Testing Sampling and Evaluation Sheet

Earthwear clothiers control activities testing

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EARTHWEAR CLOTHIERSControl Activities Testing - Sampling and Evaluation Sheet: Accounts PayableDecember 31, 2014Compute Sample SizeThe list below indicates the control activities tested using voucher packets in Part A (Part Awas a Chapter 6 assignment, but you can complete this assignment even if you did notcomplete Part A). Use the information provided below to calculate the sample size usingACL. Please refer to Chapter 8 of the textbook for instructions on how to use ACL tocalculate sample sizes. When different sample sizes are computed for control activities thatwill be tested concurrently, it is common to use the largest sample size computed for testingall control activities (See Chapter 8 for a more detailed description. Note: For thesampling functions to work in ACL a workbook needs to be open. Any workbook willdo. For example, you can open the "Metaphor Employee Data" workbook, which isinstalled with ACL.)Work Paper 8-1Description of Control ActivitiesDesiredConfidenceLevelPopulationTolerableDeviationRate (%)ExpectedPopulationDeviationRate (%)Sample Size1Document packet includes all documents appropriate for the transaction.90%2147 5%1%2The Purchase Requisition is signed by a supervisor.90%2147 10%4%3The Purchase Order is signed by an authorized purchasing agent.90%2147 10%1%4 Quantities on vendor's invoice agree with relatedreceiving report and purchase order, and invoice ismathematically correct.90%2147 5%1%0210012538
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5All documents in voucher packet have been stamped "paid".90%2147 10%1%Sample Size Used Compute Upper Deviation RateThe list below indicates the test of controls results for each control activity. Use theinformation provided to evaluate the results using ACL. Please refer to Chapter 8 forinstructions on using ACL to evaluate test results and to compute the upper deviation rate.After you compute the upper deviation rate, determine whether the test results met theobjectives and can be accepted (i.e., determine whether the computed upper deviation rate isbelow the tolerable deviation rate noted above for the control activity). Select "Accept" or"Reject" from the drop down menu in each cell of the Accept/Reject column. For controlactivities that you reject, please indicate necessary revisions to the audit plan. (Round yourdeviation rate answers to 2 decimal places. Omit the "%" sign in your response.)Description of Control ActivitiesDesiredConfidence LevelSample SizeNumberofDeviationsComputedUpper DeviationRate (%)Accept/ R1Document packet includes all documents appropriate for the transaction.90%0 % 2The Purchase Requisition is signed by a supervisor.90%2 % 3The Purchase Order is signed by an authorized purchasing agent.90%1 % 4Quantities on vendor's invoice agree with related receiving report and purchase order, and invoice is mathematically correct.90%1 % 5All documents in voucher packet have been stamped "paid".90%0 % ReferenceseBook& Resources1038125Reject510Accept38Reject812Accept1016Accept
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