# Question: Required Review each of the following independent sets of conditions

Required:

Review each of the following independent sets of conditions. For each condition, calculate the

(1) Sample rate of deviation, and use AICPA sample evaluation tables to identify the

(2) Upper limit rate of deviation and

(3) Allowance for sampling risk (n5 sample size, d 5 deviations, ROO 5 risk of overreliance). What is your conclusion regarding the relationship of each of these factors to the upper limit rate of deviation based on comparing the upper limit rate of deviation across different combinations of these factors?

a. n 5 60, d 5 4, ROO 5 5%.

b. n 5 60, d 5 6, ROO 5 5%.

c. n 5 60, d 5 6, ROO 5 10%.

Review each of the following independent sets of conditions. For each condition, calculate the

(1) Sample rate of deviation, and use AICPA sample evaluation tables to identify the

(2) Upper limit rate of deviation and

(3) Allowance for sampling risk (n5 sample size, d 5 deviations, ROO 5 risk of overreliance). What is your conclusion regarding the relationship of each of these factors to the upper limit rate of deviation based on comparing the upper limit rate of deviation across different combinations of these factors?

a. n 5 60, d 5 4, ROO 5 5%.

b. n 5 60, d 5 6, ROO 5 5%.

c. n 5 60, d 5 6, ROO 5 10%.

**View Solution:**## Answer to relevant Questions

Required: Review each of the following independent sets of conditions. For each condition, calculate the (1) Sample rate of deviation, and use AICPA sample evaluation tables to identify the (2) Upper limit rate of deviation, ...Audra Dodge, CPA, is performing an attributes sampling plan for her audit of Truck Company. In her audit of cash disbursements, she has identified preparing a voucher and marking it as “paid” prior to preparing and ...Required: Go to the Kaplan website link at www. mhhe.com /louwers6e, click on Abernathy Inc. (Sample Size) AUD TBS, and complete your answer.What are tests of controls? What is the audit team’s goal in performing them in an attributes sampling application?How does the audit team determine tolerable misstatement? What is the relationship between tolerable misstatement and sample size?Post your question