Simulation: Statistical Auditing
This activity has two problems that deal with the items you would typically encounter during statistical auditing. Each problem will give you data and ask you a series of questions.
In Problem 1 Actual Allowance for Sampling Risk, you will use the information from a table of various risk percentages and sample sizes to determine the appropriate computed upper exception rate (CUER) to be used for samples when testing for controls.
In Problem 2 Tests of Transactions, you will use the information from a table to calculate the missing attributes in the table in order to obtain samples for the testing of controls.
Problem 1Problem 2
For the first problem, the questions relate to determining the CUER in audit sampling for tests of controls. Please use the following table for Problem 1 :
|Acceptable risk of over-reliance (ARO) (in percent)||10||10||5||5|
|Number of exceptions||2||4||2||3|
Calculate sample exception rate (SER) for each of columns 1 through 4. Use the SER to calculate the actual allowance for sampling risk. Fill in the missing values.
Now answer the following questions about the data:
For this problem, the sampling data sheet is missing information for six attributes involving tests of transactions for the sales and collection cycle.
Use Table 15-8 Determining Sample Size for Attributes Sampling and 15-9 Evaluating Sample Results (click the link to access each table) to complete the missing cells in the table below.
|Attributes||EPER||TER||ARO||Initial Sample Size||Sample Size||Number of Exceptions||CUER|