| Course | AC557 Internal Control Design, Development, and Evaluation |
|---|---|
| Unit | Unit 5 |
| Paper type | Control test plan |
| Length | About 710 words, 5 pages double-spaced |
| Format | APA 7 student paper |
| School | Purdue University Global |
| Program | MS in Accounting |
| Updated | October 2026 |
Free sample paper for AC557 Unit 5
Forty Yard-Days, a Test of One and No Test at All: A Unit 5 Control Test Plan Sized Before Any Record Is Pulled
[Student Name]
Purdue University Global
AC557: Internal Control Design, Development, and Evaluation
Unit 5 Test Plan
[Instructor Name]
[Date]
Rookwood Metal Recovery and every figure are composite; the framework, standard, guidance and audit guide cited are real.
The Sample-Size Key
Sample size depends on how often a control operates and how much risk rides on it. The key below is the parent company's SOX program standard, consistent with common practice for tests of controls (American Institute of Certified Public Accountants, 2019).
An automated control is tested with one instance, provided the system's access and change controls have themselves been tested and found effective for the period, because a configured control performs the same way every time unless the program changes. A control performed annually is tested once; quarterly, two; monthly, two, or five where the risk is elevated; weekly, five or fifteen; daily, twenty-five, or forty where fraud risk is rated elevated; and a control performed many times a day, twenty-five or sixty. The higher figure applies wherever the risk assessment marks the related risk as fraud-susceptible, as it does for grading and price overrides.
The Plan, Control by Control
C-02, scale calibration. Monthly, at three yards with two or three scales each, eight scales in all. Population: monthly calibration records from the yard supervisors' logs, compared with the scale inventory. Because calibration errors affect every load's weight, every record for the year will be tested, ninety-six in all, rather than a sample: the population is small and complete testing removes sampling risk.
C-03, grade photo. Per load, thousands a month. Fraud-susceptible. The walkthrough found the photo routinely taken after unloading, so the control is referred for redesign and will be tested only after the redesign has operated for a period. Planned size after redesign: sixty loads.
C-05, price table changes. Per change; the change log shows about 120 changes a year. Sample of twenty-five changes, selected from the log after testing the log's completeness against month-end copies of the price table.
C-06, weights from the scale; C-08, posted price applied; C-12, seller identification. Automated. Test of one each, by attempting the prohibited action in the test environment and observing the system's response, then confirming the production configuration matches. Reliance depends on the IT general controls test for the scale software, which the IT team is performing separately.
C-07, override review. Daily at three yards, about 750 yard-days a year. Fraud-susceptible. Sample of forty yard-days, selected at random across the three yards and the year. Attributes: timely sign-off by 10 a.m. the next business day, a documented investigation of every override above $150, and use of a complete and accurate override report. The report's completeness will itself be tested, because the review is only as good as the report it relies on.
C-10, net realizable value review. Monthly. Elevated risk because metal prices are volatile. Five months, including the three with the largest price movements.
C-11, kiosk loading. Not tested. The walkthrough found one person loading the kiosk with a shared second code, so the control cannot operate as designed. Testing operation would only confirm what the walkthrough already showed. The control goes to deficiency evaluation and remediation.
Each number in the plan comes from two facts about the control, how often it runs and how much fraud risk rides on it, which is why the same plan holds a test of one, a test of forty and a decision not to test at all.
What Counts as a Deviation
For each control, the plan defines in advance what counts as a failure. For C-07, a sign-off after 10 a.m., any override above $150 without a documented investigation, or a review performed on a report that proves incomplete each counts as a deviation. For sampled controls, the plan accepts no deviations at the sizes chosen: one deviation in forty, for example, would lead to evaluation rather than reliance (Public Company Accounting Oversight Board, 2007).
Timing
Interim testing covers January to June, with a rollforward through December for the controls that showed no exceptions (Committee of Sponsoring Organizations of the Treadway Commission, 2013).
References
American Institute of Certified Public Accountants. (2019). Audit sampling: Audit guide. AICPA.
Committee of Sponsoring Organizations of the Treadway Commission. (2013). Internal control: Integrated framework. COSO.
Public Company Accounting Oversight Board. (2007). An audit of internal control over financial reporting that is integrated with an audit of financial statements (Auditing Standard No. 5). PCAOB.
Reading the AC 557 Unit 5 instructions
Unit 5 of AC557 asks you to plan tests of operating effectiveness for key controls. Start with a sample-size key that links size to control frequency and to risk, including a higher size where fraud risk is elevated, and explain why automated controls can be tested once. Then, for each key control, state the attribute tested, the population and its source, how completeness of the population will be established, the period, the method, the sample size and the selection approach. Explain any control you will test in full or not at all. Define in advance what counts as a deviation and how many deviations the plan tolerates. Address reliance on system reports and on general IT controls. Close with timing, including any rollforward. Cite the AICPA sampling guide, COSO and AS 2201 for your sizes and rules, in APA 7.
How this AC557 Unit 5 example is built
The sample's key gives one test for automated controls with tested general controls, two or five for monthly controls and twenty-five or forty for daily ones, the higher figure for fraud-susceptible risks. The plan then covers each control: complete testing of ninety-six scale checks, a sixty-load test of the grade photo after redesign, twenty-five price table changes after testing the log, one test each for three automated controls, forty yard-days of the override review with three attributes, and five monthly net realizable value reviews. The kiosk control is excluded. The highlighted sentence explains the logic behind the varied sizes. Deviation rules and January-to-June interim testing with a rollforward close the plan.
Where the points sit in the AC557 Unit 5 rubric
Test plans in AC557 earn points for sample sizes justified by frequency and risk and for complete test design. Graders check that each control's attributes, population, source, period, method and selection are stated, and that population completeness is addressed. The rubric rewards correct reasoning about automated controls and general IT controls, explicit handling of fraud risk, and decisions not to test controls already known to be deficient. Deviation definitions set in advance show discipline. Plans that apply one sample size to every control, omit how populations will be validated or test controls the walkthrough has already shown to be flawed lose credit. Present the plan as one table and reference its sources in APA 7.
AC557 Unit 5 help: mistakes that cost points
Common Unit 5 problems include choosing the same sample size for every control regardless of how often it runs. Automated controls are sampled like manual ones, or tested once without any reliance on general IT controls. Populations are taken from client logs without checking completeness. Fraud risk does not affect sample sizes. Deviation rules are left until results arrive. Controls the walkthrough already found deficient are tested anyway, wasting effort. If your section's control set or sampling guidance differs, a writer can build the key and the plan from your matrix and course tables.
Get an AC557 Unit 5 example written to your instructions
Name the controls your Unit 5 prompt puts in scope, add any populations, frequencies or sampling table the case supplies, and attach the rubric. Each control is sized from one stated key, with deviations defined before any result, in a plan returned within 24-48h. There is no charge for the first custom plan. The paper above is an original model document written by our desk, not a submitted student paper and not an official Purdue University Global document.
More AC557 papers and MS in Accounting samples
- AC557 Unit 1: Control Environment Discussion
- AC557 Unit 2: Control Objectives and Risks Worksheet
- AC557 Unit 3: Internal Control Design Matrix
- AC557 Unit 4: Control Walkthrough Memo
- AC557 Unit 6: Testing Workpaper
- AC557 Unit 7: Deficiency Evaluation Memo
- AC557 Unit 8: Seminar Reflection
- AC557 Unit 9: Remediation Plan
- AC557 Unit 10: Control Assessment Report
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AC557 Unit 5 questions, answered
Why is an automated control tested only once?
An automated control performs the same way every time unless its programming changes. If change management over the system is effective, one test per configuration shows how it behaves across the period. The plan tests the price table once per grade family and states that the conclusion depends on the separate change management testing, the condition graders look for.
Where do sample sizes like 25 or 40 come from?
From guidance that scales size to how often a control runs and how much reliance rests on it. Firms and companies publish their own tables, and many courses supply one. The plan states its key at the top and applies it consistently, so if your section gives a different table, the sizes change while the logic stays the same.
Why not test a control that failed the walkthrough?
Because the walkthrough already showed the design cannot achieve its objective, so operating tests would only confirm that a flawed control ran as flawed. The deficiency is evaluated from the design finding directly, and testing resumes once the control is redesigned, which the remediation unit schedules with a date.
Where can I find a free AC557 Unit 5 sample paper?
This page holds a full AC557 Unit 5 test plan for nine key controls at Rookwood Metal Recovery with a sample-size key, control-by-control design, deviation rules and APA 7 references.
Why test all ninety-six scale checks instead of a sample?
The population is small and every load's weight depends on the scales, so testing every monthly check removes sampling risk at little extra cost. Complete testing is often sensible for small, high-impact populations.