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AutoSave Off hw - Compatibility Mode - Saved to this PC- Search Haggard, Brendan (Student) HB File Home Insert Design Layout References Mailings Review View Help Share Comments X LA Times New Rom 12 A A A A E ALT AaBbCcDc AaBbCcDc AaBbc AaBbc AaBb C 1 No Spac... 1 Normal Heading 1 Heading 2 Title Find Replace Select Paste BI Uab X, X ADA Dictate Sensitivity Editor Clipboard F Font Styles Editing Voice Sensitivity Editor . Paragraph Problem #1 - Attribute Sampling ABC Company processes an average of 600 vouchers payable every month. Each voucher package contains a copy of the check disbursed and supporting documents such as vendor invoices, receiving reports, and purchase orders. The internal auditor plans to examine a sample of vouchers listed in the voucher register using attribute sampling to evaluate the effectiveness of several controls. The attributes of interest include: Attribute #1 - Agreement of voucher amounts with invoice amounts Attribute #2 - Voucher canceled after payment Based on experience, the auditor expects a deviation rate of 1.0% for the first attribute and 1.50% for the second attribute. The Auditor decides on a tolerable deviation rate of for the first attribute and 5% for the second attribute. He sets the risk of assessing control risk too low at 5%. Assume that the auditor's tests uncovered two (2) occurrences of vouchers not agreeing with invoice amounts and one (1) occurrence of vouchers not being canceled after payment. Complete the following Schedules: B C Attribute #1 Attribute #2 Risk of Assessing Control Risk too low Expected population deviation rate Sample size (per table) #1 #5 Sample size used (Round Up) #2 #6 Number of deviations found Tolerable deviation rate Achieved Upper Limit #3 #7 Control Effective (Yes or No) #4 #8 D E G H I Page 1 of 8 10 of 2165 words Focus 90% e I 11:17 AM 12/13/2020

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