Assume that you are examining the cash disbursements of Foxx, Inc., to determine that these disbursements were properly authorized by Foxx's personnel. During 20X1, a total of 4,000 disbursements were made. Assume that you established a desired risk of overreliance of 5%, a tolerable deviation rate of 5%, and an expected deviation rate of 2%. REQUIRED: (1) (2) (3) What sample size should be used for this test of controls? How would your sample size have changed if you decided to increase your desired exposure to the risk of overreliance to 10%? For a risk of overreliance of 5% and the following number of deviations, determine the upper precision limit. Use linear interpolation where necessary to come up with a more exact answer, rounding to two decimal places. (a) 3 deviations. (b) 4 deviations. (c) 6 deviations What is your conclusion concerning the operating effectiveness of the control based on your answers in (3) above? Discuss each conclusion independently of each other (4) Assume that you are examining the cash disbursements of Foxx, Inc., to determine that these disbursements were properly authorized by Foxx's personnel. During 20X1, a total of 4,000 disbursements were made. Assume that you established a desired risk of overreliance of 5%, a tolerable deviation rate of 5%, and an expected deviation rate of 2%. REQUIRED: (1) (2) (3) What sample size should be used for this test of controls? How would your sample size have changed if you decided to increase your desired exposure to the risk of overreliance to 10%? For a risk of overreliance of 5% and the following number of deviations, determine the upper precision limit. Use linear interpolation where necessary to come up with a more exact answer, rounding to two decimal places. (a) 3 deviations. (b) 4 deviations. (c) 6 deviations What is your conclusion concerning the operating effectiveness of the control based on your answers in (3) above? Discuss each conclusion independently of each other (4)