03
Feb
10

A.02 Chapter 14 (14-29)

14 – 29
A. SER= Number of exception / sample size
Column Planned Audit SER TER(5%) – SER
ARACR Population Size Sample Size Number of Exeption (%)
1 10 5000 200 4 2 3
2 5 5000 200 4 2 3
3 5 5000 50 1 2 3
4 5 50000 200 4 2 3
5 5 500 100 2 2 3
6 5 900 100 10 10 0
7 5 5000 100 0 0 5
8 5 500 25 0 0 5
B.
Column Planned Audit CUER
ARACR Population Size Sample Size Number of Exeption
1 10 5000 200 4 4
2 5 5000 200 4 4,6
3 5 5000 50 1 9,2
4 5 50000 200 4 4,6
5 5 500 100 2 6,2
6 5 900 100 10 16,4
7 5 5000 100 0 3
8 5 500 25 0 11,3
C. 1. Decrease in ARACR                      = CUER Increase
2. Decrease in Population size             = CUER Increase
3. Decrease in sample size                 = CUER Increase
4. Decrease in number of exception   = CUER Increase
D. Sample size and Number of exception have the greatest effects on the CUER, population size has the least effect on the CUER.
E. It is necessary to compare the CUER with the TER because the auditor need to analyze  the individual exception to find the weakness of internal control.
For complete document, click Chapter14 (14 – 29)

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