Williams,CPA,determined that the appropriate samples size for a test of controls related to the completeness of purchase transactions was 148 items.Using the AICPA Sample Size tables,which of the following represent assessments that could have been made by Williams to determine this sample size?
A)5% risk of overreliance,4% tolerable rate of deviation,and 1% expected population deviation rate.
B)5% risk of overreliance,7% tolerable rate of deviation,and 3.25% expected population deviation rate.
C)10% risk of overreliance,8% tolerable rate of deviation,and 2% expected population deviation rate.
D)10% risk of overreliance,15% tolerable rate of deviation,and 1.75% expected population deviation rate.

Question

Quizplus · Accepted Answer

The appropriate sample size for a test of controls related to the completeness of purchase transactions was 148 items. The AICPA Sample Size tables could be used to determine this sample size.

Option A has a 1% expected population deviation rate, which is below the 3.25% tolerable rate of deviation. This suggests that the sample size could be lower than 148 items.

Option C has a 10% risk of overreliance, which is higher than the 5% risk of overreliance given. This suggests that the sample size should be higher than 148 items.

Option D has a 15% tolerable rate of deviation, which is higher than the 7% tolerable rate of deviation given. This suggests that the sample size should be lower than 148 items.

Option B has a 5% risk of overreliance, a 7% tolerable rate of deviation, and a 3.25% expected population deviation rate. These values suggest that the appropriate sample size is 148 items. Therefore, option B is the best choice.

Williams,CPA,determined That the Appropriate Samples Size for a Test of Controls