What is the upper limit rate of deviation? What information does the upper limit rate of deviation provide to the audit team?
Answer to relevant QuestionsDescribe the general process used to determine the upper limit rate of deviation using AICPA sampling tables.How should an audit team using non-statistical sampling for attributes testing evaluate the results of the test?Baily Cox, an audit manager, judged that the test of controls of the company’s 50,000 purchase transactions should be based on a tolerable rate of deviation of 6 percent, a risk of overreliance of 5 percent, and an ...An audit team designed a sample that would provide a 10 percent risk of overreliance that not more than 7 percent of sales invoices lacked credit approval. From previous audits, the audit team expected that 3 percent of the ...The primary benefit of using non-statistical sampling is that a. It generally results in a smaller sample size. b. It removes the need to consider allowance for sampling risk. c. It is simpler to use. d. All of the above are ...
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