Do not respond if you are not good in accounting nor if you are familiar with IDEA!
You have been asked to test the effectiveness of Ingo Corporation’s control of manually approving all purchases over $25,000. During the year, Ingo Corporation has made 1,000,000 purchases, of which 3,000 were over $25,000. Jian Zhang, CPA, your supervisor, asked you to use a tolerable deviation rate of 4 percent (although she expects the rate to be only approximately 0.25 percent) and a 5 percent risk of assessing control risk too low.
Use the following to determine the planned assessed level of control risk and the assessed level of control risk.
(Planned) Assessed Level of Control Risk
Slightly below the maximum Maximum
Tolerable Deviation Rate
2–7% 6–12% 11–20% Over 20%
a. What is the planned assessed level of control risk (low, moderate, slightly below the maximum, or maximum)?
b. Use IDEA to determine the appropriate sample size and the allowable number of deviations using IDEA’s Beta Risk Control approach (controlling the risk of assessing control risk too low).
c. For this part assume that the sample size was 114 items. Use IDEA to determine replies for the following to determine the assessed level of control risk under each of the assumptions on deviations included in the sample—0, 1, or 8. Again use IDEA’s Beta Risk control approach (controlling the risk of assessing control risk too low).
As part of your audit of the Abba Company accounts payable function, your audit plan includes a test of controls addressing the company policy requiring that all vouchers be properly approved. You estimate the population deviation rate to be 3 percent.
Assume that a sample of 100 has been drawn, audit tests performed, and a sample deviation rate of 4 percent computed. Furthermore, you have selected a 5 percent risk of assessing control risk too low as appropriate.
d. Use IDEA to determine the achieved upper deviation rate when four deviations have been identified. Assume a population of 5,000 items and that you are using IDEA’s Beta Risk control approach (controlling the risk of assessing control risk too low).
Why Work with Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
24/7 Customer Support
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admission Essays & Business Writing Help
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.