calgari clothing is a devision of a&b industries and manufactures high quality silk ties that are marketed under a number of brand names. As an internal auditor A&B, you have been assigned to review Calgari's controls over purchasing and have determined that there are a number of controls in place. You have decided to test the operating effectiveness of the following control: Vendor invoices are agreed to receving reports and purchase orders for product, quantity and price. You also have decided to apply attribute sampling in your test.

a. Clearly state how you would test the operating effectiveness of the control identified above.

b. assume that you expext 2% deviation rate in the sample and that you will tolerate a deviation rate of 7% at a 5% risk of assessing the control risk too low. What is the appropriate sample size your audit test?

C. assume that the correct sample size is 100. Assume further that you properly tested the 100 sample results and indicate what, if any, further action you should take