a. Based on the sample results, what allowance for sampling risk is included in the computed upper deviation rate of 7.8?
b. Assume that Matthews preliminarily assessed control risk as “low.” Given the results above, the auditor could decide to do one of three things:
(1) Increase the sample size,
(2) Increase the preliminary assessment of control risk, or
(3) Not adjust the preliminary assessment of control risk. Describe how Matthews could justify each of those three actions. Get Accounting Help Today