Complete the following two assignments on sampling for attributes and upload your answer file on or before Tuesday, February 12 A. Review each of the following controls. Identify (1) the objective of the audit team's test of controls and (2) one example of a deviation from the control. 1. The credit department supervisor reviews each customer's order and approves credit by making a notation on the order. 2. The billing department must receive written notice from the shipping department of actual shipment to a customer before a sale is recorded. The sales record date is supposed to be the shipment date. 3. Billing clerks carefully identify the correct catalog list prices for goods shipped and calculate and verify the amounts billed on invoices for the quantities of goods shipped. 4. Billing clerks review invoices for intercompany sales and mark each one with the code 9 so they will be posted to intercompany sales accounts. B. Nadine Perry conducted a test of controls where the tolerable deviation rate was set at 6 percent and the expected population deviation rate was 3 percent. Using a sample size of 150, Perry performed the planned test of controls. She found six deviations in the sample, and she calculated the computed upper deviation rate to be 7.8 percent. Required: Assume that Perry preliminarily assessed control risk as "low." Given the results above, the auditor could decide to do one of three things: (1) increase the sample size, (2) increase the preliminary assessment of control risk, or (3) not adjust the preliminary assessment of control risk. Describe how Perry could justify each of those three actions. Complete the following two assignments on sampling for attributes and upload your answer file on or before Tuesday, February 12 A. Review each of the following controls. Identify (1) the objective of the audit team's test of controls and (2) one example of a deviation from the control. 1. The credit department supervisor reviews each customer's order and approves credit by making a notation on the order. 2. The billing department must receive written notice from the shipping department of actual shipment to a customer before a sale is recorded. The sales record date is supposed to be the shipment date. 3. Billing clerks carefully identify the correct catalog list prices for goods shipped and calculate and verify the amounts billed on invoices for the quantities of goods shipped. 4. Billing clerks review invoices for intercompany sales and mark each one with the code 9 so they will be posted to intercompany sales accounts. B. Nadine Perry conducted a test of controls where the tolerable deviation rate was set at 6 percent and the expected population deviation rate was 3 percent. Using a sample size of 150, Perry performed the planned test of controls. She found six deviations in the sample, and she calculated the computed upper deviation rate to be 7.8 percent. Required: Assume that Perry preliminarily assessed control risk as "low." Given the results above, the auditor could decide to do one of three things: (1) increase the sample size, (2) increase the preliminary assessment of control risk, or (3) not adjust the preliminary assessment of control risk. Describe how Perry could justify each of those three actions