Attributes Estimation Assume you are considering controls over a client's purchasing activities, and estimate the following for acceptable risk of assessing control risk (CR) too low, tolerable rate of deviation, and expected population deviation rate. Risk of CR Too Lom Tolerable Rate Expected Rate .05 05 07 05 :01 .015 05 .06 .0125 .10 .07 035 Attribute 1. Voucher package (for example, purchase requisition purchase order, receiving report, and invoice) is canceled after payment is made 2. Purchase is properly authorized 3. Details on purchase requisition, purchase order, receiving report, and invoice agree 4. Purchase order in voucher package agrees with copy filed in Purchasing department 6. Canceled checks contain appropriate signatures and endorsements. 6. Details on voucher package agree with canceled check (for example, check number date, payee, and amount), The sampling results for each attribute follow. Number of Attribute Deviations 1 2 2 2 3 .05 .08 0.02 05 .08 .03 NON 5 Required: 1. Using Figure 9-2 as a guide, prepare a work sheet documenting the attribute estimation sampling results. The work sheet should indicate required sample size determined (and sample size used, if different), estimated population deviation rate, and maximum population deviation rate. Attributes Estimation Assume you are considering controls over a client's purchasing activities, and estimate the following for acceptable risk of assessing control risk (CR) too low, tolerable rate of deviation, and expected population deviation rate. Risk of CR Too Lom Tolerable Rate Expected Rate .05 05 07 05 :01 .015 05 .06 .0125 .10 .07 035 Attribute 1. Voucher package (for example, purchase requisition purchase order, receiving report, and invoice) is canceled after payment is made 2. Purchase is properly authorized 3. Details on purchase requisition, purchase order, receiving report, and invoice agree 4. Purchase order in voucher package agrees with copy filed in Purchasing department 6. Canceled checks contain appropriate signatures and endorsements. 6. Details on voucher package agree with canceled check (for example, check number date, payee, and amount), The sampling results for each attribute follow. Number of Attribute Deviations 1 2 2 2 3 .05 .08 0.02 05 .08 .03 NON 5 Required: 1. Using Figure 9-2 as a guide, prepare a work sheet documenting the attribute estimation sampling results. The work sheet should indicate required sample size determined (and sample size used, if different), estimated population deviation rate, and maximum population deviation rate