What effects will an auditor’s belief that the population’s actual deviation rate exceeds the tolerable deviation rate have on the test of controls sample size?
Answer to relevant QuestionsWhat would be the difference between an attributes sampling plan and a variables sampling plan in a test of inventory extensions?Explain how, in using the mean-per-unit method to evaluate results, the auditors use the differences between the audited values and the book values of the individual items in their sample.Reply as to whether you believe the following statements are correct (C) or incorrect (I) concerning PPS sampling.a. The size of a PPS sample is not based on the estimated variation of audited amounts.b. PPS sampling results ...A PPS sample with a sampling interval of $2,000 includes an item with an audited value of $90. This value was $30 lower than the account’s book value. Calculate the tainting percent- age for this account.During your reconciliation of bank accounts in an audit, you find that a number of checks for small amounts have been outstanding for more than a year. Does this situation call for any action by the auditor? Explain.
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