Focused Assessment Program
Exhibit 6A Appendix V
Example Audit Report Tables
NOTE: These examples are designed to illustrate sample tables for Focused Assessment audits. These sample tables should be adjusted as appropriate and used in all audit reports when substantive testing is done. Example for ACT: Sample Design Area Approach: Classification Judgmental Sampling There is a desire to concentrate audit effort in a specific problem area revealed by a previous sample or other source of information. In addition, the sampling frame is very small and therefore, it is possible to review most of the frame value without statistical sampling. The sample results can be used to determine the level of compliance and amount of revenue loss. All ACS Entry Lines with High Risk Classifications for Fiscal Year Ended December 31, 2003 132 $11,895,002 $375,447 101 $10,755,954 $353,112
Why Chosen:
Frame: Frame Size: Frame Value: Frame Duty: Sample Size: Sample Value: Sample Duty:
1 October 31, 2004
Focused Assessment Program
Exhibit 6A Appendix V
Example for Follow-up: Sample Design Area Approach: Classification Judgmental Sampling There is a desire to concentrate audit effort in a specific problem area revealed by a previous sample or other source of information. In addition, the sampling frame is very small and therefore, it is possible to review the entire frame. The sample results can be used to determine the level of compliance and amount of revenue loss. All ACS Entry Lines with High Risk Classifications for the 6 Months Ended February 29, 2004 (the Period after CIP Implementation) 63 $5,852,334 $190,225 63 $5,852,334 $190,225
Why Chosen:
Frame: Frame Size: Frame Value: Frame Duty: Sample Size: Sample Value: Sample Duty:
Example for ACT or Follow-up: Sample Design Area Approach: Why Chosen: Frame: Frame Size: Frame Value: Frame Duty: Sample Size: Sample Value: Sample Duty: 9802.00.80 Variable Dollar Unit Sampling The testing is substantive in nature and the sample results can be used to compute the level of compliance and project revenue loss. 9802.00.80 ACS Entry Lines for Fiscal Year Ended December 31, 2003 2,295 $23,876,544 $0 65 $689,742 $0
2 October 31, 2004
Focused Assessment Program
Exhibit 6A Appendix V
Example for ACT or Follow-up: Sample Designing Parameters Area Approach: Why Chosen: Frame: Frame Size: Frame Value: Frame Duty: Sample Size: Sample Value: Sample Duty: Classification Variable Physical Unit Sampling Stratified by Value (4 Strata) The testing is substantive in nature and the sample results can be used to compute the level of compliance and project revenue loss. ACS Entry Lines for the Fiscal Year Ended December 31, 2003 12,988 $163,931,095 $7,165,083 104 $1,455,194 $64,721
Example for ACT or Follow-up: Sample Design Area Approach: Why Chosen: Frame: Frame Size: Frame Value: Frame Duty: Sample Size: Sample Value: Sample Duty: ADD/CVD Attribute Discovery Sampling The area is very sensitive and any error would constitute a failure of the universe. In addition, if errors exist, the sample results can be used to compute the level of compliance and project revenue loss. ACS Entry Lines With Merchandise Potentially Subject to ADD/CVD for the Fiscal Year Ended December 31, 2003 3,794 $48,982,005 $2,502,980 89 $1,182,721 $58,308
3 October 31, 2004
Focused Assessment Program
Exhibit 6A Appendix V
Example for ACT or Follow-up: Sample Design Area: Approach: Why Chosen: Frame: Stratum 1: Stratum 1 Size: Stratum 1 Value: Sample 1 Size: Sample 1 Value: Stratum 2: Stratum 2 Size: Stratum 2 Value: Sample 2 Size: Sample 2 Value: Stratum 3: Stratum 3 Size: Stratum 3 Value: Sample 3 Size: Sample 3 Value: Stratum 4: Stratum 4 Size: Stratum 4 Value: Sample 4 Size: Sample 4 Value: Value Variable Physical Unit Sampling Stratified by Expense Account The testing is substantive in nature and the sample results can be used to compute the level of compliance and project revenue loss. Selected General Ledger Expense Accounts Design Samples Expense Account 92500 1588 $584,662 30 $13,405 Art Design Expense Account 92700 1,390 $3,087,712 45 $95,823 Tool Parts Expense Account 93100 637 $2,874,144 35 $162,426 Miscellaneous Expense Account 95500 264 $653,009 15 $37,591
4 October 31, 2004