B 1 Name(s): 123456 7 Compute Sample Size C D E F G H J EARTHWEAR CLOTHIERS Control Activities Testing - Sampling and Evaluation Sheet: Accounts Payable December 31, 2022 The list below indicates the control activities tested using voucher packets in Part A (Part A was a Chapter 6 assignment, but you can complete this assignment even if you did not complete Part A). Use the information provided below to calculate the sample size using IDEA. Please refer to Chapter 8 of the textbook for instructions on how to use IDEA to calculate sample sizes. When different sample sizes are computed for control activities that will be tested concurrently, it is common to use the largest sample size computed for testing all control activities (see Chapter 8 for a more detailed description). 8 Description of Control Activities Desired Confidence Level Tolerable Expected Population Deviation Deviation Population Rate (%) Rate (%) Sample Size 9 10 1 Document packet includes all documents appropriate for the transaction. 2 The Purchase Requisition is signed by a supervisor. 90% 2,147 5% 1% Enter Here 90% 2,147 10% 4% Enter Here 11 3 The Purchase Order is signed by an authorized purchasing agent. 90% 2,147 10% 1% Enter Here 4 12 Quantities on vendor's invoice agree with related receiving report and purchase order, and invoice is mathematically correct. 90% 2,147 5% 1% Enter Here 13 5 All documents in voucher packet have been stamped "paid". 90% 2,147 10% 1% 14 Sample Size Used Enter Here 0 15 16 17 Compute Upper Deviation Rate The list below indicates the test of controls results for each control activity. Use the information provided to evaluate the results using IDEA. Please refer to Chapter 8 for instructions on using IDEA to evaluate test results and to compute the upper deviation rate. After you compute the upper deviation rate, determine whether the test results met the objectives and can be accepted (i.e., determine whether the computed upper deviation rate is below the tolerable deviation rate noted above for the control activity). Select "Accept" or "Reject" from the drop down menu in each cell of the Accept/Reject column. For control activities that you reject, please indicate necessary revisions to the audit plan. 8-1 10/10/22 18 Description of Control Activities Desired Confidence Level Sample Size Number of Deviations Computed Upper Deviation Rate (%) Accept/ Reject Describe Any Necessary Revisions to the Audit Plan 19 1 Document packet includes all documents appropriate for the transaction. 90% 0 0 Enter Here 20 2 The Purchase Requisition is signed by a supervisor. 90% 0 2 Enter Here 21 3 The Purchase Order is signed by an authorized purchasing agent. Quantities on vendor's invoice agree with related receiving report and purchase order, and invoice is mathematically correct. 90% 0 1 Enter Here 90% 0 1 Enter Here 90% 0 0 Enter Here 22 23 5 All documents in voucher packet have been stamped "paid". 24 25 26 The McGraw-Hill Companies, Inc., 2022 27 28 Instructions Work Paper 8-1 +