Question: An auditor is testing a control with statistical sampling and determines the expected population deviation rate to be 2% and the tolerable deviation rate to

An auditor is testing a control with statistical sampling and determines the expected population deviation rate to be 2% and the tolerable deviation

An auditor is testing a control with statistical sampling and determines the expected population deviation rate to be 2% and the tolerable deviation rate to be 7%. The auditor confirms there are 3 deviations found within the sample. The total population contains 3,000 units. In theory when considering the entire population, how many divergent sampling units would the auditor be willing to accept and still conclude that the control is acceptably effective? (enter your answer in numeric format and include decimals if necessary)

1n\% Rick of cceccine Contral Rick Thn I nw 10\% Risk of scescinc Control Risk Ton I nW

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Use the graph to answer the following four questions: 1) An auditor is testing a control with statistical sampling and determines the expected population deviation rate to be 2% and the tolerable...

Fill in the Blank: An auditor is testing a control with statistical sampling and determines the expected population deviation rate to be 2% and the tolerable deviation rate to be 7%. The auditor...

True or False: An auditor is testing a control with statistical sampling and determines the expected population deviation rate to be 2% and the tolerable deviation rate to be 7%. The auditor confirms...

Fill in the Blank: An auditor is testing a control with statistical sampling and determines the expected population deviation rate to be 2% and the tolerable deviation rate to be 7%. The auditor...

\ table [ [ Sample Size,Actual Number of Deviations Found ] , [ 0 , 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 ] , [ 2 0 , 1 0 . 9 , 1 8 . 1 , 2 4 . 5 , 3 0 . 5 , 3 6 . 1 , 4 1 . 5 , 4 6 . 8 , 5 1 . 9 , 5 6 . 8 ]...

- Management claims that the accounts receivable amounts are real, not fictitious. What management assertion is involved? a. Completeness b. Existence c. Rights and Obligations d. Valuation and...

An auditor wishes to calculate the appropriate sample size to use in testing controls.Based on the following parameters and the tables provided, what sample size will be used? Sampling risk i.e. Risk...

please help!! need to fill out the first two pages. tables provided Use the tables below to solve the problem. Complete each part of the problem in the spaces provided. Make sure to show all of your...

Depreciation Changes On January 1, 2006, McElroy Company purchased a building and equipment that have the following useful lives, salvage value s, and costs. Building, 40-year estimated useful life,...

Suppose that the government wants to raise investment but keep output constant. In the ISLM model, what mix of monetary and fiscal policy will achieve this goal? In the 1980s, the Canadian government...

Value is a measure of the price for performance of a product. a. True b. False

Discuss the policy statement concept and identify three focus areas / procedures where a clearpolicy statement / operating procedure

1. Who Moved My Cheese? is the all-time best-selling book in Amazon.coms history and is printed in 42 languages. Analyze why organizations around the world would buy millions of these books for their...

1. It has been said that authenticity is correlated with many aspects of psychological well-being such as improving self-esteem and coping skills. How does increased self-awareness help us grow in...

1. Recall the last time you were angry at another person or were a victim of a situation that made you angry. For example, someone you trusted divulged some personal information about your family...