Examlex

Solved

Before Performing Sampling Procedures in an Audit of Controls, Sue

question 14

Essay

Before performing sampling procedures in an audit of controls, Sue set the tolerable deviation rate at 4.0%. After the procedures, she computes a computed upper deviation rate of 5.4%. What can Sue conclude about the entity's controls?


Definitions:

Link-Chain Method

A statistical method used for adjusting economic or financial time series data for the effects of inflation or other external factors to show real changes over time.

Dollar-Value LIFO

Dollar-value LIFO (Last In, First Out) is an accounting method used for inventory that measures the cost of inventory in dollar terms, adjusting for inflation.

Cost Index

An index that measures the changes in the cost or price of specific goods or services over time.

Related Questions