The following are auditor judgments and attributes sampling results for six populations. Assume large population sizes.
1 2 3 4 5 6
EPER (in percent) 2 0.5 1 0 2 5
TER (in percent) 6 4 20 3 8 10
ARO (in percent) 10 5 10 5 5 10
Actual sample size 100 100 20 100 60 60
Actual number of exceptions in the sample 2 3 1 1 1 5
a. For each population, did the auditor select a smaller sample size than is indicated by
using the attributes sampling tables in Table 15-8 (p. 519) for determining sample size?
What are the implications of selecting either a larger or smaller sample size than those
determined using the tables?
b. Calculate the SER and CUER for each population.
c. For which of the six populations should the sample results be considered unacceptable?
What options are available to the auditor?
d. Why is analysis of the exceptions necessary even when the populations are considered acceptable?
e. For the following terms, identify which is an audit decision, a nonstatistical estimate
made by the auditor, a sample result, and a statistical conclusion about the population:
(1) EPER
(2) TER
(3) ARO
(4) Actual sample size
(5) Actual number of exceptions in the sample
(6) SER
(7) CUER
