View the step-by-step solution to:

Question

In the eyes of the auditor how would you answer the below two questions?

alt="Screenshot_20191210-142658~2.png" />

Screenshot_20191210-142658~2.png

Estimated number of transactions per year 5000
Risk of assessin control risk too low 5%
Tolerable deviation rate 4%
Expected population deviation rate 0.5%
Sample size per table 1 1?
Sample size used 125
Number of deviations found 2
Sample deviation rate 1.6%
Upper deviation limit 4.9%
Allowance for sampling risk 3.3% Evaluate the sample results. Your answer should include: 1. A statistical conclusion. 2. The audit decision you would make based on the quantitative sample results.
Be sure to include the reason for the decision.

Top Answer

Let me explain the... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question