Problem

Attributes Sampling with IDEA: Determining Sample Size, Selecting Sample Items, and Evalua...

Attributes Sampling with IDEA: Determining Sample Size, Selecting Sample Items, and Evaluating Sample Results. Your audit team has established the following parameters for the examination of ELM’s control over the authorization of sales:

Required:

Using IDEA, perform the following related to ELM’s control over credit approvals.

a. Determine the appropriate sample size. Based on the sample size and preceding parameters, how many deviations could be observed without the audit team reducing their reliance on the authorization control?


b. Using systematic random selection, a random start of 23, as well as the sample size in part (a), select sample items from the population. What are the first five transactions that will be selected for examination?


c. After performing your tests of controls, you have identified three deviations in your sample. What is the ULRD? What conclusion would you draw with respect to the functioning of ELM’s controls over the authorization of sales?

Step-by-Step Solution

Request Professional Solution

Request Solution!

We need at least 10 more requests to produce the solution.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search