In Each of the Following Situations,indicate Whether a Fixed (F),sequential

question 100

Short Answer

In each of the following situations,indicate whether a fixed (F),sequential (S),or discovery (D)attributes sampling plan is being used.
1____.The audit team has determined the tolerable rate of deviation to be 5%,the risk of overreliance to be 10%,and the expected population deviation rate to be zero.
2____.Based on the risk of overreliance,expected population deviation rate and tolerable rate of deviation,the audit team examined a sample of 50 items before determining if additional items should be included in the sample.
3____.Using the AICPA Sample Size tables,the audit team determined the appropriate sample size and selected the sample items.However,the audit team stopped the examination after a deviation was found.
4____.The audit team established the risk of overreliance to be 5%,the tolerable rate of deviation to be 4%,and the expected population deviation rate to be 3%.Using the AICPA Sample Size tables,the audit team decided to sample over 1,000 items.
5____.The audit team is performing a sampling application to evaluate the operating effectiveness of an entity's internal controls.The application used could provide a more efficient method of examination,but it is important that the audit team evaluate the sample in the order they were selected.

---

Definitions:

Visually Intimidating

A description of something that appears daunting or overwhelming at first glance, often due to its size, complexity, or design.

Topic Sentence

The leading sentence in a paragraph that outlines the paragraph's primary concept or point, guiding the reader through the text.

Business Writing

A form of writing that focuses on clear, concise, and professional communication within a business context.

Transitional Elements

Components used in writing or speech that help smoothly connect ideas, sentences, or paragraphs, facilitating a coherent flow.