Expected population deviation rate. The deviation rate believed to exist in the population. Auditor judgment, considering such factors as the overall control environment and prior audit findings, would be used in estimating this rate. The expected deviation rate is directly related to sample size and must be lower than the tolerable rate if the control is to be relied upon. Consequently, the sample size will be larger than required, and the auditor will perform unnecessary work.
Tables are also available to assist the auditor in evaluating the results of tests of controls.
However, like the sample size tables, the small number of tabled values limits their usefulness. A Worksheet Solution A worksheet that automates the sample size determination and the test evaluation would improve audit efficiency. The Exhibit shows how the spreadsheet output would appear. The auditor enters the italicized values shown in the Exhibit, while the numbers in bold are returned by the worksheet s calculations. The worksheet also provides additional information for other deviation results.