Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. as part of your audit of the abba company accounts

As part of your audit of the Abba Company accounts payable function, your audit program...

90.2K

Verified Solution

Question

Accounting

As part of your audit of the Abba Company accounts payable function, your audit program includes a test of controls addressing the company policy requiring that all vouchers be properly approved. You estimate the population deviation rate to be 3 percent.
Required:

  1. In addition to an estimate of population deviation rate, what factors affect the size of the sample needed?

  2. What bases could be used to provide an estimate of the population deviation rate?

  3. Assume that a sample of 100 has been drawn, audit tests performed, and a sample deviation rate of 4 percent computed. Furthermore, you have selected a 5 percent risk of assessing control risk too low as appropriate. Use the appropriate table to determine the achieved upper deviation rate.

  4. What actions can be taken to deal with a situation in which the achieved upper deviation rate exceeds the tolerable rate?

  5. Make the same assumptions as in part (c). Use ACL to determine the achieved upper deviation rate.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students