Enter each control you tested with the sample size and the exceptions found. The tool works out the deviation rate, compares it with the tolerable rate you set, and drafts a conclusion line for each control that you can edit for the working paper.
Leave Tolerable rate % blank on a line to use the default below. The tolerable rate is your own judgement based on the control, the risk and the reliance you plan to place on it.
This compares the sample deviation rate with your tolerable rate. It does not compute an upper limit from sampling tables. Use your firm methodology and the current standards for sample sizes and for projecting results.
| Control | Sample | Exceptions | Rate % | Tolerable % | Result |
|---|---|---|---|---|---|
| Purchase orders approved before invoice | 40 | 0 | 0.0 | 5.0 | Within tolerable |
| Vendor bank detail changes authorised | 25 | 1 | 4.0 | 5.0 | Exceptions to investigate |
| Bank reconciliation reviewed monthly | 12 | 0 | 0.0 | 5.0 | Within tolerable |
| Journal entries above limit approved | 60 | 4 | 6.7 | 5.0 | Exceeds tolerable |
| Goods received notes matched to invoices | 45 | 2 | 4.4 | 8.0 | Exceptions to investigate |
| Sales credit notes authorised | 30 | 3 | 10.0 | 5.0 | Exceeds tolerable |
The drafted conclusion for each control is in the Excel file, ready to edit.
Reliance on a control depends on how often it fails compared with how often you can accept it failing. A zero-exception test supports reliance if the sample was big enough. An exception inside the tolerable rate still needs a reason. A rate above tolerable means the control cannot be relied on as planned and the rest of the audit plan may need to change.
The deviation rate is exceptions divided by sample size, shown as a percentage. You set a default tolerable rate and can override it on any line.
A rate above the tolerable rate is marked as exceeding. A rate at or below it with at least one exception is marked for investigation. No exceptions is marked within tolerable. Lines with unusable numbers are marked incomplete.
Each line gets a draft sentence you can edit. The Excel file keeps a blank column for your own conclusion.
Journal entries above the approval limit were tested: 60 items, 4 without approval, tolerable rate 5%.
