Assume that the auditor has selected 80 sales invoices from a population of 80,000 to test...

  
 
 

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Assume that the auditor has selected 80 sales invoices from a population of 80,000 to test for an indication of internal verification of pricing and extensions. Determine the CUER at a 10 percent ARO if four exceptions are found in the sample using statistical attributes sampling. Explain the meaning of the statistical results in auditing terms. (Click the icon to view the tables for determining CUER using a 5% Risk of Overreliance.) (Click the icon to view the tables for determining CUER using a 10% Risk of Overreliance.) Determine the CUER at a 10 percent ARO if four exceptions are found in the sample using statistical attributes sampling. The CUER is (...) %. This means that the auditor can state with a that the true population exception rate Sample Size 20 25 30 35 40 45 50 55 60 65 70 75 80 90 100 125 150 200 5 PERCENT RISK OF OVERRELIANCE Actual Number of Exceptions Found 1 2 3 4 5 6 7 8 9 14.0 21.7 28.3 34.4 40.2 45.6 50.8 55.9 60.7 65.4 11.3 17.7 23.2 28.2 33.0 37.6 42.0 46.3 50.4 54.4 9.6 14.9 19.6 23.9 28.0 31.9 35.8 39.4 43.0 46.6 8.3 12.9 17.0 20.7 24.3 27.8 31.1 34.4 37.5 40.6 7.3 11.4 15.0 18.3 21.5 24.6 27.5 30.4 33.3 36.0 6.5 10.2 13.4 16.4 19.2 22.0 24.7 27.3 29.8 32.4 5.9 9.2 12.1 14.8 17.4 19.9 22.4 24.7 27.1 29.4 5.4 8.4 11.1 13.5 15.9 20.5 22.6 24.8 26.9 18.2 16.8 18.8 4.9 7.7 10.2 12.5 14.7 20.8 22.8 24.8 4.6 7.1 9.4 11.5 13.6 15.5 17.5 19.3 21.2 23.0 4.2 6.6 8.8 10.8 12.7 14.5 16.3 18.0 19.7 21.4 4.0 6.2 8.2 10.1 11.8 13.6 15.2 16.9 18.5 20.1 3.7 5.8 7.7 9.5 11.1 12.7 14.3 15.9 17.4 18.9 3.3 6.9 8.4 9.9 11.4 12.8 14.2 15.5 16.9 3.0 6.2 7.6 9.0 10.3 11.5 12.8 14.0 15.2 2.4 5.0 6.1 7.2 8.3 9.3 10.3 11.3 12.3 2.0 4.2 5.1 6.0 6.9 7.8 10.3 1.5 3.2 3.9 4.6 5.2 5.9 7.8 5.2 4.7 3.8 3.2 2.4 8.6 9.5 6.5 7.2 10 69.9 58.4 50.0 43.7 38.8 34.8 31.6 28.9 26.7 24.7 23.1 21.6 20.3 18.2 16.4 13.2 11.1 8.4 Sample Size 20 25 30 35 40 45 50 55 60 65 70 75 80 90 100 125 150 200 10 PERCENT RISK OF OVERRELIANCE Actual Number of Exceptions Found 0 1 2 3 4 5 6 7 9 10 10.9 18.1 24.5 30.5 36.1 41.5 61.6 66.2 8.8 14.7 42.6 46.8 50.8 54.8 20.0 24.9 29.5 34.0 38.4 28.8 32.5 7.4 12.4 16.8 21.0 24.9 36.2 39.7 43.2 46.7 6.4 10.7 14.5 18.2 21.6 24.9 28.2 31.4 34.5 37.6 40.6 5.6 9.4 12.8 16.0 19.0 22.0 24.9 27.7 30.5 33.2 35.9 5.0 8.4 11.4 14.3 17.0 19.7 22.3 24.8 27.3 29.8 32.2 4.6 7.6 10.3 12.9 15.4 17.8 20.2 22.5 24.7 27.0 29.2 4.2 6.9 9.4 11.8 14.1 16.3 18.4 20.5 22.6 24.6 26.7 3.8 6.4 8.7 10.8 12.9 15.0 16.9 18.9 20.8 22.7 24.6 3.5 5.9 8.0 10.0 12.0 13.9 15.7 17.5 19.3 21.0 22.8 3.3 5.5 7.5 9.3 11.1 12.9 14.6 16.3 18.0 19.6 21.2 3.1 5.1 7.0 8.7 10.4 12.1 13.7 15.2 16.8 18.3 19.8 2.9 4.8 6.6 8.2 9.8 11.3 12.8 14.3 15.8 17.2 18.7 4.3 5.9 7.3 8.7 10.1 11.5 12.8 14.1 15.4 16.7 3.9 5.3 6.6 7.9 9.1 10.3 11.5 12.7 13.9 15.0 5.3 6.3 7.3 8.3 9.3 10.2 11.2 12.1 3.6 4.4 5.3 6.1 7.0 7.8 8.6 9.4 10.1 4.0 4.6 5.3 5.9 6.5 7.1 7.6 2.6 2.3 1.9 3.1 4.3 1.6 2.6 1.2 2.0 2.7 3.4 67 8 46.8 51.9 56.8 Assume that the auditor has selected 80 sales invoices from a population of 80,000 to test for an indication of internal verification of pricing and extensions. Determine the CUER at a 10 percent ARO if four exceptions are found in the sample using statistical attributes sampling. Explain the meaning of the statistical results in auditing terms. (Click the icon to view the tables for determining CUER using a 5% Risk of Overreliance.) (Click the icon to view the tables for determining CUER using a 10% Risk of Overreliance.) Determine the CUER at a 10 percent ARO if four exceptions are found in the sample using statistical attributes sampling. The CUER is (...) %. This means that the auditor can state with a that the true population exception rate Sample Size 20 25 30 35 40 45 50 55 60 65 70 75 80 90 100 125 150 200 5 PERCENT RISK OF OVERRELIANCE Actual Number of Exceptions Found 1 2 3 4 5 6 7 8 9 14.0 21.7 28.3 34.4 40.2 45.6 50.8 55.9 60.7 65.4 11.3 17.7 23.2 28.2 33.0 37.6 42.0 46.3 50.4 54.4 9.6 14.9 19.6 23.9 28.0 31.9 35.8 39.4 43.0 46.6 8.3 12.9 17.0 20.7 24.3 27.8 31.1 34.4 37.5 40.6 7.3 11.4 15.0 18.3 21.5 24.6 27.5 30.4 33.3 36.0 6.5 10.2 13.4 16.4 19.2 22.0 24.7 27.3 29.8 32.4 5.9 9.2 12.1 14.8 17.4 19.9 22.4 24.7 27.1 29.4 5.4 8.4 11.1 13.5 15.9 20.5 22.6 24.8 26.9 18.2 16.8 18.8 4.9 7.7 10.2 12.5 14.7 20.8 22.8 24.8 4.6 7.1 9.4 11.5 13.6 15.5 17.5 19.3 21.2 23.0 4.2 6.6 8.8 10.8 12.7 14.5 16.3 18.0 19.7 21.4 4.0 6.2 8.2 10.1 11.8 13.6 15.2 16.9 18.5 20.1 3.7 5.8 7.7 9.5 11.1 12.7 14.3 15.9 17.4 18.9 3.3 6.9 8.4 9.9 11.4 12.8 14.2 15.5 16.9 3.0 6.2 7.6 9.0 10.3 11.5 12.8 14.0 15.2 2.4 5.0 6.1 7.2 8.3 9.3 10.3 11.3 12.3 2.0 4.2 5.1 6.0 6.9 7.8 10.3 1.5 3.2 3.9 4.6 5.2 5.9 7.8 5.2 4.7 3.8 3.2 2.4 8.6 9.5 6.5 7.2 10 69.9 58.4 50.0 43.7 38.8 34.8 31.6 28.9 26.7 24.7 23.1 21.6 20.3 18.2 16.4 13.2 11.1 8.4 Sample Size 20 25 30 35 40 45 50 55 60 65 70 75 80 90 100 125 150 200 10 PERCENT RISK OF OVERRELIANCE Actual Number of Exceptions Found 0 1 2 3 4 5 6 7 9 10 10.9 18.1 24.5 30.5 36.1 41.5 61.6 66.2 8.8 14.7 42.6 46.8 50.8 54.8 20.0 24.9 29.5 34.0 38.4 28.8 32.5 7.4 12.4 16.8 21.0 24.9 36.2 39.7 43.2 46.7 6.4 10.7 14.5 18.2 21.6 24.9 28.2 31.4 34.5 37.6 40.6 5.6 9.4 12.8 16.0 19.0 22.0 24.9 27.7 30.5 33.2 35.9 5.0 8.4 11.4 14.3 17.0 19.7 22.3 24.8 27.3 29.8 32.2 4.6 7.6 10.3 12.9 15.4 17.8 20.2 22.5 24.7 27.0 29.2 4.2 6.9 9.4 11.8 14.1 16.3 18.4 20.5 22.6 24.6 26.7 3.8 6.4 8.7 10.8 12.9 15.0 16.9 18.9 20.8 22.7 24.6 3.5 5.9 8.0 10.0 12.0 13.9 15.7 17.5 19.3 21.0 22.8 3.3 5.5 7.5 9.3 11.1 12.9 14.6 16.3 18.0 19.6 21.2 3.1 5.1 7.0 8.7 10.4 12.1 13.7 15.2 16.8 18.3 19.8 2.9 4.8 6.6 8.2 9.8 11.3 12.8 14.3 15.8 17.2 18.7 4.3 5.9 7.3 8.7 10.1 11.5 12.8 14.1 15.4 16.7 3.9 5.3 6.6 7.9 9.1 10.3 11.5 12.7 13.9 15.0 5.3 6.3 7.3 8.3 9.3 10.2 11.2 12.1 3.6 4.4 5.3 6.1 7.0 7.8 8.6 9.4 10.1 4.0 4.6 5.3 5.9 6.5 7.1 7.6 2.6 2.3 1.9 3.1 4.3 1.6 2.6 1.2 2.0 2.7 3.4 67 8 46.8 51.9 56.8

Answer rating: 100% (QA)

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