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Chapter 11 A Simulation Question Paper

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Chapter 11 Extra Credit Homework Simulation Question 8-3 1. Incorrect assumption, statement, and computation in Curry’s application of the attribute estimation sampling technique. 1) Curry wanted to asses Control Risk (CR) at a low level, which means strong audit. In order to have a low CR, audit should pick his/her Tolerable Exception Rate (TER) low too because they are directly related values for audit assessment. On the contrary Curry’s TER was 20 % which is a high value for low CR. 2) Curry should have followed the 14 steps of AES but he did not fulfill all the subtitles. 3) Curry failed to identify population correctly, at the beginning he was planning to statistical sampling approach to 8,000 shipping documents but in the process

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