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Case 10- Exercise 1

Exhibit 10- 3

Abemethy and Chapman

Sampling for Attributes

client:

year ending:

Audit of testing;

Date of testing:

1)- State the objectives of the audit testing

2)- Define the attribute or attributes to be estimate

3)- Define the population

4)- Define the sampling event

5)-Specify the acceptable risk of assessment control risk too low, and discuss any factors affecting this decision

6)-estimate the exception rate of the population and discuss any factors affecting this decision

7)- specify the tolerable exception rate and discuss any factors affecting this decision

8)- Indicate the sample size, and show the use of the finite correction if applicable

9)- Indicate the method used to draw a random sample

10)- Indicate the number of exception discovered, the rate of exception in the sample, and the computed upper exception rate in the population:

11)- From a quantitative perspective, is the population reliable? ( include the rational for your answer.

12)- Describe the type of exception that were found

13)- Recommendation

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