Required
Prepare all parts of a sampling data sheet (such as the one on p. 461) through the planned sample size for the above audit program, assuming that a line item in the cash disbursements journal is used for the sampling unit. Use either no statistical or attributes sampling. For all procedures for which the line item in the cash disbursements journal is not an appropriate sampling unit, assume that audit procedures were performed on a no sampling basis. For all tests of controls, use a tolerable exception rate of 5 percent, and for all substantive tests of transaction, use a rate of 6 percent. Use an ARACR of 10 percent, which is considered medium. Plan for an estimated population exception rate of 1 percent for tests of controls and 0 percent for substantive tests of transactions.
Prepare the data sheet using the microcomputer (instructor option—also applies to Part II).