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    Attributes: Audit Conclusion

    Uploaded by

    Jhay R de Leon
    The document appears to show results from statistical sampling used in an audit to test internal controls over purchasing activities. It includes a table with sampling details and results like expected sample size, number of deviations, sample deviation rate, and maximum population deviation rate for each attribute tested. The audit conclusion is that controls are effective for authorization and cancellation based on three attributes meeting tolerable deviation rates, but ineffective for voucher package details and signatures/endorsements based on three exceeding tolerable rates. Overall, control risk is set at maximum.

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    Attributes: Audit Conclusion

    Uploaded by

    Jhay R de Leon
    19 views2 pages
    The document appears to show results from statistical sampling used in an audit to test internal controls over purchasing activities. It includes a table with sampling details and results like expected sample size, number of deviations, sample deviation rate, and maximum population deviation rate for each attribute tested. The audit conclusion is that controls are effective for authorization and cancellation based on three attributes meeting tolerable deviation rates, but ineffective for voucher package details and signatures/endorsements based on three exceeding tolerable rates. Overall, control risk is set at maximum.

    Original Description:

    aud

    Original Title

    Aud

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    The document appears to show results from statistical sampling used in an audit to test internal controls over purchasing activities. It includes a table with sampling details and results like expected sample size, number of deviations, sample deviation rate, and maximum population deviation rate for each attribute tested. The audit conclusion is that controls are effective for authorization and cancellation based on three attributes meeting tolerable deviation rates, but ineffective for voucher package details and signatures/endorsements based on three exceeding tolerable rates. Overall, control risk is set at maximum.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    19 views2 pages

    Attributes: Audit Conclusion

    Uploaded by

    Jhay R de Leon
    The document appears to show results from statistical sampling used in an audit to test internal controls over purchasing activities. It includes a table with sampling details and results like expected sample size, number of deviations, sample deviation rate, and maximum population deviation rate for each attribute tested. The audit conclusion is that controls are effective for authorization and cancellation based on three attributes meeting tolerable deviation rates, but ineffective for voucher package details and signatures/endorsements based on three exceeding tolerable rates. Overall, control risk is set at maximum.

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    © All Rights Reserved
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    Attributes

    Accepta
    ble Risk
    of
    Assessin
    g
    Control
    Risk Too
    Low

    Tolera
    ble
    Rate
    of
    deviati
    on

    Expecte
    d
    Sample Size
    Populat
    ion
    Table
    Deviati Used
    on Rate

    Numbe
    r of
    deviati
    ons

    Sampl
    e
    Deviati
    on
    Rate

    Maximu
    m
    Populat
    ion
    Deviati
    on Rate

    .05

    .07

    .01

    66

    70

    .014

    .066

    Accept

    .05

    .05

    .015

    124

    125

    .016

    .05

    Accept

    .05

    .06

    .0125

    78

    80

    .038

    .095

    Reject

    .10

    .07

    .035

    113

    120

    .033

    .066

    Accept

    .05

    .08

    .02

    77

    80

    .063

    .127

    Reject

    .05

    .08

    .03

    95

    100

    .06

    .115

    Reject

    Accep
    t or
    Reject

    1. Voucher package (for example,

    purchase requisition, purchase order,


    receiving report and invoice) is
    cancelled after the payment is made.
    2. Purchase is properly authorized.
    3. Details on purchase requisition,

    purchase order, receiving report and


    invoice agree.
    4. Purchase order in voucher package
    agrees with copy filed in Purchasing
    department.
    5. Cancelled checks contain appropriate
    signatures and endorsements.
    6. Details on voucher package agree with

    cancelled check (for example, check


    number, date, payee and amount).
    9-9 Attribute Estimation

    Audit Conclusion
    Based on procedures performed, the tolerable rate of deviation equals or exceeds the maximum population deviation rate for the first, second,
    and fourth attributes while the remaining attributes exceeded to its tolerable rate of deviation. Therefore, controls over purchasing activities

    are considered effective in terms of authorization and cancellation of voucher package. However, it is also ineffective in terms of the details of
    voucher package and appropriate signatures and endorsement. Control risk for assertions related to purchasing activities is set at maximum.

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