AC410's Unit 6 sampling plan, shown for a composite millwork client, draws sixty-four weekly time records by recorded seed from 1,946 to test a labor approval control. Searches like "ac 410 unit 6 assignment example", "ac410 unit 6 sample" and "ac410 unit 6 example" land here.
What a finished AC410 Unit 6 sampling plan looks like
Three pages of plan and a one-page evaluation. The plan opens with the objective: to test whether the shop supervisor approved each week's labor charges before payroll processed them. The population comes next, 1,946 employee-week time records from January 1 through October 31, reconciled to the payroll register's count before selection. A deviation is defined three ways: no approval before processing, approval by someone without authority, or hours charged to a closed job. Parameters follow, a 10 percent risk of overreliance, a tolerable deviation rate of 6 percent and an expected rate of 1 percent, giving 64 items. Selection uses a spreadsheet random number generator with its seed recorded. The evaluation page reports one deviation, an upper limit of 5.9 percent, and the conclusion that reliance holds, narrowly.
How a AC410 Unit 6 example is structured
Every element of the plan is fixed before selection, and the order makes that visible: objective, population, sampling unit, deviation definition, parameters, sample size, selection method, evaluation rule. The population is reconciled to an independent count first, because a sample drawn from an incomplete population says nothing about the missing part. The deviation definition precedes the parameters so nobody can later decide a finding does not count. Sample size is shown twice, read from the AICPA sampling guide's table and confirmed with a binomial calculation, so a reviewer can check either. The evaluation rule states in advance that one deviation leaves the upper limit under 6 percent and two push it past, to 8.1. The results page then applies that rule, considers the deviation's cause, and sets out the rollforward for November and December.
What the test is for
Weekly approval of labor charges matters because labor cost feeds percent complete, so an unapproved hour can become revenue. The objective says this in one sentence.
1,946 records, all accounted for
Employee-week records for January through October, reconciled to the payroll register before selection so the population is known to be complete.
Three kinds of deviation
No approval before payroll processed, approval by someone without authority, or hours charged to a job already closed. Each is defined before testing starts.
Sixty-four, derived twice
Ten percent risk of overreliance, 6 percent tolerable, 1 percent expected: 64 from the guide's table, confirmed by a binomial calculation shown beneath it.
One deviation, 5.9 percent
A week approved two days after payroll by the plant manager while the supervisor was on leave. The upper limit stays under 6 percent, and the conclusion says how narrowly.
Where marks go in AC410 Unit 6
A sample size with no parameters behind it is the first thing graders strike through, since the plan exists to show where the number came from. Population definitions that skip the completeness check, or define the unit loosely as payroll, cost the next marks. A deviation left undefined until after testing invites the suspicion that findings were explained away. Selection is checked for bias: taking the first 64 records, or those at hand, is not random, and haphazard selection needs its limits acknowledged. Evaluations that compare the sample rate, 1.6 percent here, with the tolerable rate instead of the upper limit misread attribute sampling entirely. Concluding reliance without considering the deviation's cause loses judgment marks, as does ignoring the untested months after October.
Get a AC410 Unit 6 example written to your instructions
Within 24-48h, the plan, its size derivation and an evaluation rule arrive, every figure taken from your population. Name the control or account your Unit 6 prompt targets, give the population details and any risk levels it sets, and add the rubric; the first custom sample is free.
AC410 Unit 6 questions, answered
Why does the evaluation use an upper limit rather than the sample rate?
Because a sample rate describes only the items tested. One deviation in 64 is 1.6 percent, but the population rate could be higher, and at 90 percent confidence it could be as high as 5.9 percent. Reliance is justified only if that upper limit stays within the tolerable rate. Comparing the sample rate with the tolerable rate is the commonest evaluation error in this unit.
Can the sample be selected systematically instead of randomly?
Yes, if the population has no pattern that would line up with the interval. Here the interval would be about 30 records, and records sorted by employee and then week show no obvious cycle, so systematic selection with a random start would also be acceptable. The AC410 sample uses random numbers with a recorded seed because that removes the question entirely and lets a reviewer reproduce the selection.
What happens if two deviations are found?
The upper limit rises to about 8.1 percent, above the 6 percent tolerable rate, so the planned reliance on the control is not supported. The auditor would then reduce reliance and expand substantive testing of labor charges, or test a larger sample if a better result is reasonably expected. The sample states this rule in advance, which is what makes its evaluation credible.