Question: Identify the factors an auditor uses to decide the appropriate ARACR
Identify the factors an auditor uses to decide the appropriate ARACR. Compare the sample size for an ARACR of 10% with that of 5%, all other factors being equal.
Answer to relevant QuestionsState the relationship between the following:a. ARACR and sample sizeb. Population size and sample sizec. TER and sample sized. EPER and sample sizeList the major decisions that the auditor must make in using attributes sampling. State the most important considerations involved in making each decision.The following questions concern the determination of the proper sample size in audit sampling using the following table:Requireda. Assume that the initial sample size for column 1 using nonstatistical sampling is 90 items. ...Auditors have used samples to conduct audit tests for decades. Despite the frequent use of sampling, auditors often use nonstatistical sampling rather than statistical sampling. Visit the website for The CPA Journal ...Evaluate the following statement: "In many audits in which accounts receivable is material, the requirement of confirming customer balances is a waste of time and would not be performed by competent auditors if it were not ...
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