1. Carlos Garcia, the senior-in-charge of the audit, asks you to determine the sample size for each of the control procedures shown in the following table:

Control Procedure

Parameters 1 2 3 4 5

Risk of assessing control risk too low 5% 5% 10% 10% 5%

Risk of assessing control risk too high 10% 10% 5% 5% 10%

Tolerable deviation rate 2% 3% 3% 2% 4%

Expected population deviation rate 0% 1% 1% .5% 1.5%

Sample size

Using the sample sizes determined above and the number of deviations shown here, Carlos Garcia asks that you determine the sample deviation rate, and the computed upper deviation rate.

Control Procedure

Results 1 2 3 4 5

Number of deviations 2 2 2 3 1

Sample size used from table

Sample deviation rate

Tolerable deviation rate 2% 3% 3% 2% 4%

Computed upper deviation rate

What decision would you make for each control procedure?

1. Decision:

2. Decision:

3. Decision:

4. Decision:

5. Decision: