In discussions with the order fulfillment and shipping departments, you learn that it is common for...
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In discussions with the order fulfillment and shipping departments, you learn that it is common for a partial or "split" shipment to go out because of an insufficient quantity of items in stock to fulfill the customer order. However, controls should prohibit shipping a higher quantity than was ordered. Using information from Roger Company's shipping file, determine how many records contain fields where the quantity shipped exceeds the quantity ordered. Problem 11 Use ACL to determine the sample size an auditor should use for attributes sampling given the criteria listed below: 1. With any ACL project (e.g., Roger Company) open, choose Sampling on the menu toolbar 2. Click on Calculate Sample Size 3. Choose the Record option Confidence is 95 Population is 1000 . • • • Upper Error Limit (%) is 8 (this is tolerable error) Expected Error Rate (%) is 3 4. Click Calculate 5. What is the recommended sample size? Problem 12 How would the sample size change if all sample-size inputs listed in Problem 11 stayed the same with the exceptions listed below? Please evaluate each item independently by resetting the inputs to those listed in Problem 1 and changing only the one factor listed in each item below. (Hint: If you use the Calculate button rather than the OK button the sample size window will stay open). a. Confidence dropped to 90 percent? b. Population increased to 500,000? c. Expected Error Rate (%) increased to 4? d. Upper Error Limit (%) decreases to 7? e. Upper Error Limit (%) increases to 15? Problem 13 Using your results from Problem 12 above: a. Which of the following four input factors-confidence, population, upper error limit, or expected error rate-has the smallest effect on the sample size? In discussions with the order fulfillment and shipping departments, you learn that it is common for a partial or "split" shipment to go out because of an insufficient quantity of items in stock to fulfill the customer order. However, controls should prohibit shipping a higher quantity than was ordered. Using information from Roger Company's shipping file, determine how many records contain fields where the quantity shipped exceeds the quantity ordered. Problem 11 Use ACL to determine the sample size an auditor should use for attributes sampling given the criteria listed below: 1. With any ACL project (e.g., Roger Company) open, choose Sampling on the menu toolbar 2. Click on Calculate Sample Size 3. Choose the Record option Confidence is 95 Population is 1000 . • • • Upper Error Limit (%) is 8 (this is tolerable error) Expected Error Rate (%) is 3 4. Click Calculate 5. What is the recommended sample size? Problem 12 How would the sample size change if all sample-size inputs listed in Problem 11 stayed the same with the exceptions listed below? Please evaluate each item independently by resetting the inputs to those listed in Problem 1 and changing only the one factor listed in each item below. (Hint: If you use the Calculate button rather than the OK button the sample size window will stay open). a. Confidence dropped to 90 percent? b. Population increased to 500,000? c. Expected Error Rate (%) increased to 4? d. Upper Error Limit (%) decreases to 7? e. Upper Error Limit (%) increases to 15? Problem 13 Using your results from Problem 12 above: a. Which of the following four input factors-confidence, population, upper error limit, or expected error rate-has the smallest effect on the sample size?
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Solution Problem 11 1 Opened ACL project Roger Company 2 Chose Sampling ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
Posted Date:
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