Assume that you are working on the audit of a small company and are examining purchase invoices
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You decide that a rate of deviation in the population as high as 5 percent would not require any extended audit procedures. However, if the population rate of deviation is more than 5 percent, you would want to assess a higher control risk and conduct more extensive substantive tests.
In each case, write the letter of the sample (A or B) that, in your judgment, provides the best evidence that the rate of deviation in the population is 5 percent or lower ( using a risk of overreliance of 5 percent). Assume that each sample is selected at random. Refer to AICPA sample evaluation tables ifnecessary.
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Related Book For
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
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