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Audit sample performing of the balance of revenue. giving materiality 500, 3,500 of revenue recorded.

Audit sample performing of the balance of revenue...

giving materiality £500, £3,500 of revenue recorded. If the prior year audit noticed £3,300 to be fairly stated; total of 15 exceptions in the prior year - 2 of A, 8 of C, 4 of D, 1 of G. Its been determined that the No of exceptions for each assertion was acceptable and below the tolerable exception rate.

A-a double-recorded transaction,

B-a sale with a non-existent customer

C-sale recorded at an incorrect selling price

D-sale recorded at an incorrect quantity

E-sale recorded in the wrong period

F-sale recorded at the wrong price and quantity

G-sale does not have a corresponding shipment

H-sales amount does not agree to recorded AR amount


  1. What are the assertions each type id error violates?
  2. During sample planning stage what would be determined as audit objective?
  3. What population and sampling unit should be defined (not sure, "population of sales invoices in the sales journal"?)
  4. What is the attribute and assertion I should test for and what would constitute and exception?
  5. How can I set TER and ARO and how can I determine how many exceptions can occur before i can conclude the account misstated? Should I set different TER for different assertions?
  6. What in this case would be EPER ? and like with TER do i have different deviation rates for different assertions/attributes?

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