What is your conclusion? You are auditing revenues and receivables for ABC Corporation. ABC requires that all credit sales go through a credit approval before goods are shipped. All credit sales go through an automated approval as long as they are for $10,000 and below. Anything above $10,000 requires a manual credit check which is done by the credit manager, who then puts his signature on the sale documents.
You wish to test to test the effectiveness of ABC’s control of manually approving all credit requests over $10,000. During the year ABC has made 15,000 purchases, of which 3,000 were over $10,000. You have established a tolerable deviation rate of 5% and your expected deviation rate is 2%
1a. What is your sample size? (use the sampling table provided in chapter 8 slides - 2. 1 slide 9)
1b. What is the maximum number of deviations allowed?
1c. After selecting your sample and performing your audit test you find 5
1.d What impact does this have on your further testing?
Answers: 1
Other questions on the subject: Business
Business, 21.06.2019 13:00, merzedes
Matt and his roommate gamal argue repeatedly about wearing shoes in the house versus taking them off at the door. eventually, both are fed up with constantly arguing. they decide to sit down and talk, and not get up until they come to a resolution. this is an example of which decision-making strategy
Answers: 3
Business, 22.06.2019 05:50, salvadorperez26
Match the steps for conducting an informational interview with the tasks in each step.
Answers: 1
Business, 22.06.2019 12:50, 20170020
Kyle and alyssa paid $1,000 and $4,000 in qualifying expenses for their two daughters jane and jill, respectively, to attend the university of california. jane is a sophomore and jill is a freshman. kyle and alyssa's agi is $135,000 and they file a joint return. what is their allowable american opportunity tax credit after the credit phase-out based on agi is taken into account?
Answers: 1
Business, 22.06.2019 20:00, adriannacomrosenbark
Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. this increased level of is leading to increased emphasis on management.
Answers: 2
Do you know the correct answer?
What is your conclusion? You are auditing revenues and receivables for ABC Corporation. ABC requires...
Questions in other subjects:
English, 22.10.2019 21:10
Mathematics, 22.10.2019 21:10
History, 22.10.2019 21:10
Mathematics, 22.10.2019 21:10
Social Studies, 22.10.2019 21:10
Chemistry, 22.10.2019 21:10
English, 22.10.2019 21:10
Biology, 22.10.2019 21:10
