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te in The questions below relate to the attached table for determining the calculated upper error ra audit sampling for tests of controls. Assume the tolerable error rate is 5% for each si (column). tuation the Using nonstatistical sampling, calculate the tolerable error rate minus sample error rate for each of columns 1 through 8. Evaluate whether or not the calculated allowance for sampling risk is large enough to accept the population. For each of columns 1 through 8, determine the calculated upper error rate using attributes sampling and the appropriate sampling tables available. Using your understanding of the relationship between the four factors given in the attached table and the calculated upper error rate, state the effect on the calculated upper error rate (increase or decrease) of changing each of the following factors while the other three are held constant. (a) A decrease in the overall audit risk (b) A decrease in the population size. (c) A decrease in the sample size. (d) A decrease in the number of exceptions in the sample. Why is it necessary to compare the calculated upper error rate with the tolerable error rate? REQUIRED: (1) (2) (3) (4) TABLE OF VARIOUS SITUATIONS RELATING TO AN ATTRIBUTES SAMPLING APPLICATION 6 Overall Audit Risk Population Size Sample Size Number of Exceptions 5% 50,000 200 5% 500 100 10% 5,000 200 5% 5,000 200 5% 5,000 50 5% 900 100 5% 5,000 100 5% 500 25 0 P0 Step 2 of 5 Done Following is table showing the CUER using attribute sampling: CUER 4.6% 62% 4.0% 4.6% 92% 16.4% 3.0% 113% 2 4 8

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