Assume that Dylan Lee found two deviations in a sample of 90 transactions. Using AICPAsample evaluation tables, Lee determined that the ULRD at a 5 percent risk of overrelianceisa. 2.0 percent.b. 2.2 percent.c. 5.9 percent.d. 6.9 percent

Assume that Dylan Lee found two deviations in a sample of 90 transactions. Using AICPAsample evaluation tables, Lee determined that the ULRD at a 5 percent risk of overrelianceisa. 2.0 percent.b. 2.2 percent.c. 5.9 percent.d. 6.9 percent

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter8: Specialized Audit Tools: Attributes Sampling, Monetary Unit Sampling, And Data Analytics Tools

Section: Chapter Questions

Problem 15RQSC

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Question

Assume that Dylan Lee found two deviations in a sample of 90 transactions. Using AICPA
sample evaluation tables, Lee determined that the ULRD at a 5 percent risk of overreliance
is
a. 2.0 percent.
b. 2.2 percent.
c. 5.9 percent.
d. 6.9 percent

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Assume that an account with a recorded balance of $5,000 has an audited value of $3,000. By using monetary unit sampling, if the sampling interval is $1,500, the projected misstatement would bea. $600.b. $900.c. $2,000.d. $3,000.
Baily Cox, an audit manager, judged that the test of controls of the company’s 50,000 purchase transactions should be based on a tolerable rate of deviation of 6 percent, a risk of overreliance of 5 percent, and an expected population deviation rate of 3 percent. Using AICPAsample size tables, Cox determined that the appropriate sample size in this situation would bea. 49.b. 78.c. 132.d. 195
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