Instruction on Chapter 11 Case 1 (page 11-25):
- Please review the “Designing an Attribute Sampling Plan, Executing the Plan, and Evaluating the Sample Results” on page 11-4 before answering questions. Compare the steps described on page11-4 and the steps taken in the case. Did the auditor in the case follow through the steps? Did he miss any of the steps? Skipping steps or not performing the steps correctly should be considered deficiencies.
-Designing an Attribute Sampling Plan, Executing the Plan, and Evaluating the Sample Results:
Attribute sampling involves the following nine steps:
1.Identify a specific internal control objective and the prescribed control(s) aimed at achieving that objective.
2.Define what is meant by a control deviation.
- Define the population and sampling unit.
4.Determine the appropriate values of the parameters affecting sample size.
- Determine the appropriate sample size.
- Randomly select the sample.
- Audit the sample items selected and count the number of deviations from the prescribed control.
- Determine the achieved upper deviation limit.
- Evaluate the sample results.
- Some of you asked whether you need to complete attribute schedule as the one on page 11-24 from discussion question 3. Please take a closer look at the statistics and decide yourself whether you have enough data to do so and whether the data the auditor collected is enough for you to state an appropriate statistical conclusion.
- The auditor is taking attribute sampling approaches, so pay attention to the sample size and the factors influencing sample size. Are the factors justified and is the sample size correct and why? What are the limitations using the current sample?
- Please evaluate the basis for the auditor’s conclusion reached.
- Please give your overall opinion as the auditor’s work, how is the sampling designed and evaluated, and whether sampling/nonsampling risks are being controlled.
For a custom paper on the above topic, place your order now!
What We Offer
• On-time delivery guarantee
• PhD-level professionals
• Automatic plagiarism check
• 100% money-back guarantee
• 100% Privacy and Confidentiality
• High Quality custom-written papers
