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The following misstatements were detected by the auditor in performing substantive tests of inventories during the audit of Wixon Company. 1. Slow-moving, defective, and obsolete items are included in the inventory but not properly identified. Sampling for attributes is often used to allow an auditor to reach a conclusion concerning a rate of occurrence in a population. When an auditor samples for attributes, identify the factors that should influence the auditor's judgment concerning the determination of 1. acceptable level of risk of assessing control risk too low...

12-26 misstatements, assertions, substantive tests

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The following misstatements were detected by the auditor in performing substantive tests of inventories during the audit of Wixon Company. 1. Slow-moving, defective, and obsolete items are included in the inventory but not properly identified. Sampling for attributes is often used to allow an auditor to reach a conclusion concerning a rate of occurrence in a population. When an auditor samples for attributes, identify the factors that should influence the auditor's judgment concerning the determination of 1. acceptable level of risk of assessing control risk too low...

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