In your interim work on the sales transactions of the Carlean Company, you elect to use the attributes shown in Figure 7-7. Assume, however, the following:

The population consists of 7,000 prenumbered invoices beginning with A14260. You plan to use computer generated random number tables in selecting sample items.
Required:

a. Using the format of Figure 7-7, prepare the planned tests and actual results for the Carlean Company.

b. Comment on the auditor's alternatives for attribute(s) that exceed the desired upper precision limit.

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Attribute 2 3 5 6 123456 Only Change in Statistical Parameters Desired upper precision 7% Expected occurrence rate 1.5% Reliability 90% Reliability 95% Desired upper precision 8% Expected occurrence rate 2% Actual Number of Occurrences 1 4 1 0 0 3