Reference no: EM13886091

1.Auditors often have to test the effectiveness of infrequently operating controls, such as monthly closing and reconciliation processes. Determining the appropriate extent of testing of such controls presents 1.unique challenges because of the small size of the population. Visit the Web site for The CPA Journal (www.cpajournal.com) and use the search function to locate the article Auditing Internal Controls in Small Populations by Julian E. Jacoby and Neal B. Hitzig, December 2011.Based on your reading of the article, answer the following questions.

a. What is the nature of most infrequently operating controls, and why is it important for the auditor to test these controls?
b. What are the factors that the auditor should consider in determining the extent of tests of controls? 
c. Why do the authors believe that existing guidance for small populations results in sample sizes that are too small?
d. Explain the sampling approach the authors recommend be used to test small populations. Include comparison of the recommended sample size ranges under this approach to those recommended in the AICPA Audit Sampling Audit Guide.