What sampling risk are you using in this procedure

Reference no: EM133475217

You are an intermediate auditor who has been assigned the task of testing controls related to salary expenses. You are making a statistical sample of payments to be tested. Some relevant information is provided to you by your senior and is as follows:

-- Tolerable deviation/exception rate: 15%

-- Acceptable Risk of Overreliance: 5%

-- Estimated population deviation/exception rate: 0.5%

Determine the minimum sample size based on the above parameters
The senior auditor reviewed your sample size calculation, but also decided to use her judgment in determining the sample size and chose to conduct the tests on 50 payments. Therefore, you selected the 50 payments and performed the tests. You found 3 payments that were recorded and did not have supporting documents. Does the control pass or fail? Justify
If the population consists of 10,000 payments, and the control has to apply to every payment, how many times does the control not work in the population?
What sampling risk are you using in this procedure?

Reference no: EM133475217

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