This problem is based on the JA Tires data that was introduced in early chapters. In problem 14-32 you used audit software to test the entire population of transactions for certain attributes. However, assume the following attributes will be tested for a sample of the sales transactions:
1. Verify the existence of the customer included in the customer master file.
2. Verify that shipping and sales tax were correctly computed in accordance with com-
pany policy.
3. Agree the quantity on the sales invoice to the customer order.
4. Agree invoice amounts to subsequent customer payment.
5. Determine whether any price adjustments or discounts were properly authorized.
a. Determine the appropriate statistical sample size for each attribute using audit
software or the sampling table in Table 15-8 (p. 519). Assume an EPER of 0 percent
and ARO of 10 percent for all attributes. TER is 5 percent for attributes 1 and 5 and
6 percent for attributes 2, 3, and 4.
b. Assume you decided to select a sample of 50 for all attributes. Select a random
sample using audit software or the Excel RANDBETWEEN function.
c. Assume you performed the tests and found two exceptions for attribute 3 and one
exception for attribute 5. Calculate CUER based on ARO of 10 percent and the
sample size of 50 using audit software or Table 15-9 (p. 521).
d. Were any of the results unacceptable? Explain.
