Question: ra Media An auditor performs attribute sampling on a test of a control using statistical methods, the overall population was 1,000,000, the sample size was

ra Media An auditor performs attribute sampling on a test of a control using statistical methods, the overall population was 1,000,000, the sample size was 125, the number of deviations was 2, the allowance for sampling risk was 4%, the expected deviation rate was 2% , the tolerable deviation rate was 5%, and the computed upper deviation rate was 5.6%. What was the auditors likely conclusion about the operating effectiveness of the control tested? O The control was operating effectively. The control was not operating effectively. O The auditor would decrease overall control risk for the audit engagement based on this one test of controls. O The auditor is unable to reach a conclusion about the operating effectiveness of the control.

ra Media An auditor performs attribute sampling on a test of a control using statistical methods, the overall population was 1,000,000, the sample size was 125, the number of deviations was 2. the allowance for sampling risk was 4%, the expected deviation rate was 2%, the tolerable deviation rate was 5% and the computed upper deviation rate was 5.6%. What was he auditors likely conclusion about the operating effectiveness of the control tested? The control was operating effectively. The control was not operating effectively. The auditor would decrease overall control risk for the audit engagement based on this one test of controls. The auditor is unable to reach a conclusion about the operating effectiveness of the control

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Investigate on how supply chains remain competitive in complex environments making reference to MANGO Airlines

Read the following case study and answer the questions at the end: To remain competitive, Memorial Hospital has decided it needs to cut its budget by downsizing semiskilled workers, such as...

1.As used in PSA 560, the term "subsequent events" refers to a.Events occurring the date of the financial statement. b.Events occurring after the date of the auditor's report c.Events occurring...

The success-failure condition different kinds of inference about proportionsMany statistical inferences about sample proportions rely on a normal approximation of the sampling distribution of...

Subject Auditing 2 Please keep the answer simple and a bit short. Thank you for your time. Subject Auditing 2 Please keep the answer simple and a bit short. Thank you for your time. Statistical...

Hi, could you please help me solve this? Thank you so much. Chester, Inc. Trial Balances for years ending December 31, 2013, 2014, and 2015 Account Description Cash on Hand Regular Checking Account...

An auditor is applying statistical sampling for attributes to the testing of extensions of 1000 line items on sales invoices. A deviation is defined as an extension mistake on a line (i.e. line #39...

1. What are the total variable costs for the trip? Total variable cost for the trip ($40*8) +$168*6 = $2928 2. What are the average variable costs (per person) for the trip? Total fixed costs for the...

Prepare the journal entries to record the following transactions on Sunland Company's books using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and...

A 27.5-year residential rental property near a university is placed in service in the first month of a year. The property cost is $340,000. To improve the financials, it has been proposed that 50%...

Which is the Project Communication document that communicates the Project Schedule? Elaborate the document function, importance, and structure

What is the value of 4 summing amp-fire if you know that R1 = 50, R2 =88, R3 = 23 , R=40while the V1 = 5 ,V2 =24 ,V3 =98 and V4 = 9 and Rf = 200

State the communication documents that are used for Project execution and control.

2. For the circuit shown in Figure 1, determine the following: [2+2+2+2+2+2+2+2+4] (a) ic(0) (b) iL(0-) (c) iR(0) 20 (d) vc(0-) (e) ic(0*) Su(-1) mA ImF (f) iL(0+) (g) ir(0+) 100 mH (h) vc(0+) (i)...

4. For the circuit of Figure 2, (a) Obtain an expression for vc(t) valid for all t > 0. (6] (b) Determine ve at t 10 ms and t = 600 ms. [4] (c) Replace the 10 resistor with a 100 mf? resistor, and...

Design a minimum-mass symmetric three-bar truss (the area of member 1 and that of member 3 are the same) to support a load P, as was shown in Fig. 2.9. The following notation may be used: Pu = P cos...

How might interviewers interpret your body language?

How do you know when the interviewer wishes to end the interview?

2. that you have already determined what you plan to do and that you are able to do it?