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Week 11 Part 6 Chapter 15 pages 521 to 523 In Part V of the Pinnacle Manufacturing case, you prepared a performance format audit program.

Week 11 Part 6 Chapter 15 pages 521 to 523

           In Part V of the Pinnacle Manufacturing case, you prepared a performance format audit program. In Part VI, sample sizes will be determined by using nonstatistical or attributes sampling, and that results of the tests will be evaluated. You should use nonstatistical audit program you created in Part V, the audit manager decided to make some modifications. You agreed with her changes. The modified program in included in Figure 15-9 (p. 522).

           The audit manager has decided that the tests should be performed for the first 10 months including the month ended 10/31/16. You determine that document numbers are as follows:

Document

First Number

Last Number

Vouvher

6734

33722

Receiving report

9315

23108

Check

12376

37318

Purchase Order

3162

17200

 

a.      Using the audit program in Figure 15-9, prepare a nonstatistical sampling data sheet for acquisitions following the format in Figure 15-2 (p. 494). Prepare all parts of the sampling data sheet except those that are blank in Figure 15-2. A formatted sampling data sheet is available online.Use the following guidelines"

(1)  Use only one sampling data sheet.

(2)  Select the sampling unit that will permit you to perform the most acquisition audit procedures on the audit program.

(3)  Include all audit procedures on the audit program that are consistent with the sampling unit you selected.

(4)  Decide EPER, TER, and ARO for each attribute. Consider prior-year results for EPER.

(5)  Decide the sample size for each attribute.

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