CUM 14 Simulation 9.41 (LO 9-6) 5 88 points You have been asked to test the effectiveness of Ingo Corporation's control of manually approving all purchases over $25,000, Durl the year, Ingo Corporation has made 1,000,000 purchases, of which 3,000 were over $25,000. Jian Zhang, CPA, your supervisor, asked you to use a tolerable deviation rate of 5 percent (although she expects the rate to be only approximately 0.50 percent) and a percent risk of assessing control risk too low. Use the following to determine the planned assessed level of control risk and the assessed level of control risk (Planned) Assessed Level of control Risk LOW Moderate Slightly below the maximum Maximum Tolerable Deviation Rate 2-74 6-124 11-201 Over 20 a. What is the planned assessed level of control risk? Low Moderate O Slightly below the maximum Maximum 14 b. Determine the appropriate sample size and allowable number of deviations using Figure 9.4. Answer is complete but not entirely correct. 5.88 points 58 items Sample size Allowable number of deviations c. Use Figure 9.5 to determine the achieved upper deviation rate and the above tobie to determine the assessed level of control risk under the following circumstances. Assume that the sample size was 90 items (Round your answers to 1 decimal place.) Answer is complete but not entirely correct. Achieved Upper Assessed Level of Circumstance Davlation Rate Control Risk No deviations were included in the sample 5.40 One deviation is included in the sample 84 Moderato Eight deviations were included in the sample. Sy below the maximum LOW OOO 182