Attributes

Accepta
ble Risk
of
Assessin
g
Control
Risk Too
Low

Tolera
ble
Rate
of
deviati
on

Expecte
d
Sample Size
Populat
ion
Table
Deviati Used
on Rate

Numbe
r of
deviati
ons

Sampl
e
Deviati
on
Rate

Maximu
m
Populat
ion
Deviati
on Rate

.05

.07

.01

66

70

.014

.066

Accept

.05

.05

.015

124

125

.016

.05

Accept

.05

.06

.0125

78

80

.038

.095

Reject

.10

.07

.035

113

120

.033

.066

Accept

.05

.08

.02

77

80

.063

.127

Reject

.05

.08

.03

95

100

.06

.115

Reject

Accep
t or
Reject

1. Voucher package (for example,

purchase requisition, purchase order,

receiving report and invoice) is
cancelled after the payment is made.
2. Purchase is properly authorized.
3. Details on purchase requisition,

purchase order, receiving report and

invoice agree.
4. Purchase order in voucher package
agrees with copy filed in Purchasing
department.
5. Cancelled checks contain appropriate
signatures and endorsements.
6. Details on voucher package agree with

cancelled check (for example, check

number, date, payee and amount).
9-9 Attribute Estimation

Audit Conclusion
Based on procedures performed, the tolerable rate of deviation equals or exceeds the maximum population deviation rate for the first, second,
and fourth attributes while the remaining attributes exceeded to its tolerable rate of deviation. Therefore, controls over purchasing activities

are considered effective in terms of authorization and cancellation of voucher package. However, it is also ineffective in terms of the details of
voucher package and appropriate signatures and endorsement. Control risk for assertions related to purchasing activities is set at maximum.