You are asked by your supervisor to design and execute an attribute sampling plan pertaining to the
Question:
You are asked by your supervisor to design and execute an attribute sampling plan pertaining to the proper execution of cash receipts transactions in the Christy Company. You decide that the following attributes should be tested:
1. Remittance advices and checks agree with prelist.
2. Cash register readings agree with amounts on cash count sheets.
3. Daily cash summary agrees with combined totals of prelists and cash count sheets.
4. Daily cash summary agrees with duplicate deposit slip.
5. Duplicate deposit slip agrees with amount on bank statement.
Assume your planned statistical objectives are the same as shown for the first five attributes of Figure 8-6 except that you desire 95 percent reliability for each attribute and that the maximum expected population occurrence rate is 1.5 percent. Assume that your sample results are the same as in Figure 8-6 except that the actual occurrences for attributes 2 and 3 are 2 and 4 , respectively.
\section*{Required:}
a. Present in schedule form similar to Figure \(8-6\) the planned test and sample results for each attribute.
b. Comment on the results of your test.
Figure 8-6
Step by Step Answer:
Modern Auditing
ISBN: 9780471542834
5th Edition
Authors: Walter Gerry Kell, William C. Boynton, Richard E. Ziegler