Question: Explain the relationship between the sample size for controls testing and each of the following factors: (1) The likely effectiveness of a control; (2) The

Explain the relationship between the sample size for controls testing and each of the following factors:
(1) The likely effectiveness of a control;
(2) The acceptable rate of deviation;
(3) The expected rate of deviation;
(4) The required level of confidence in the effectiveness of the client's system of internal controls; and
(5) The number of units in the population.

Step by Step Solution

★★★★★

3.44 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 If the auditor believes that the control is likely to be more effective the auditor will seek to r... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

787-B-A-A-P (1806).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

Explain the relationship between the effectiveness of monetary policy and the interest elasticity of investment. Will monetary policy be more or less effective the higher the interest elasticity of...

Explain the relationship between transparency of firms and investor participation (or trading activity) among stock markets. Based on this relationship, how can governments of countries increase the...

Explain the relationship between financial accounting rules and tax accounting rules.

Sampling for attributes is often used to allow an auditor to reach a conclusion concerning a rate of occurrence in a population. A common use in auditing is to test the rate of deviation from a...

Sampling for attributes is often used to allow an auditor to reach a conclusion concerning the rate of occurrence in a population. A common use in auditing is to test the rate of deviation from a...

Sampling for attributes is often used to allow an auditor to reach a conclusion concerning a rate of occurrence in a population. A common use in auditing is to test the rate of deviation from a...

Please help with solving questions 1-6 as detailed as possbile. Your audit firm, Hawk & Soar, PLLC, has been engaged to perform the annual audit of TealDeal, Inc. The Company manufactures and sells...

questions 1-6. I need some guidance as well as details on how to solve each one. Name / 5 )`Hawk & Soar's controls testing Sampling policy indicates that to place a high reliance on controls 1 1.E ....

Possible Multiple Choice Questions for the Exam. Focus on the topics discussed in class. Chapter 1 Multiple Choice Identify the choice that best completes the statement or answers the question. ____...

What is your assessment on how each party handled the situation?

How do you address an application letter if you are replying to a classified ad that does not list a contact person?

which of the following what would incorrectly identified as a present value based accounting measurement? accounts receiveable, leases, pensions or notes

Outline three possible disadvantages to Malaysia that might result from the operation of the new ETG factory. [9]

In connection with your examination of the financial statements of Martinson Inc. for the year ended December 31, your post-balance sheet date audit procedures disclosed the following items: 1....

Manitoba Metal Fabricators (MMF) is a company that makes steel components for the construction industry. It specializes in extreme precision manufacturing where tolerances are measured in distances...

Mitch Ziegel and Rosie Punter are discussing the audit plan for a large manufacturing company. The company has two main manufacturing plants plus several warehouse and distribution centres (one in...

REQUIRED INVESTMENT Truman Industries is considering an expansion. The necessary equipment would be purchased for $ 9 million, and the expansion would require an additional $ 3 million investment in...

Case Study : Minute Clinic. Mentioning a nationwide shortage of primary care providers, millions of newly insured patients through the Affordable Care Act, and an aging population, Dr. Andrew...

If two projects offer the same positive NPV, then they: also have the same IRR. have the same payback period. are mutually exclusive projects. add the same amount of value to the firm