For a large population of cash disbursement transactions, Dillon Passage, CPA is testing controls by using attribute sampling techniques. Dillion plans on using an expected deviation rate of 3 percent, a tolerable deviation rate of 8 percent, and a desired confidence level of 95 percent. If Dillon finds 3 control deviations, what is the computed upper Ilmit for the deviation rate? TABLE 8-5 Statistical Sample Sizes for Attribute Sampling-95 Percent Desired Confidence Level (i.e., 5 Percent Risk of Incorrect Acceptance) Expected Population Deviation Rate Tolerable Deviation Rate 6% 2% 3% 4% 5% 8% 9% 10% 15% 14910) 236(1) 990) 1571) 157(1) 208[2) 7410) 117(1) 117(1) 117(1) 156(2) 156(2) 192(3) 227(4 5910) 93(1) 9311) 93(1) 93(1) 124(2) 12412 153(3) 181(4) 20845) 0.00% .25 .50 .75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 5.00 6.00 7.00 49(0) 7811) 7811) 781) 78(1) 7811) 103/2) 10312 127(3) 127(3) 150(4) 173(5) 195/6) 42(0) 661) 66/1) 6611) 66(1) 661) 66(1) 3812 8812) 88(2) 10913) 10913) 129(4) 14815) 167(6) 185171 360) 5811) 58411 5811) 5841) 58(1) 5811) 77(2) 7712) 7712 77(2) 95(3) 3210) 51(1) 51(1) 51(1) 5110) 51(1) 5111) 51(1) 68/2 682) 6812) 68[2) 84(3) 84(3) 84(3) 10014) 1004) 15818) 290 1910) 46(1) 3011) 46(1) 30(1) 46/11) 3011) 46/11 30/0) 46111 3011) 4611) 301) 46(1) 3011) 46/1) 30(1) 61(2) 3041) 6112) 3011) 61121 3011) 61121 30(1) 61121 30(1) 76(3) 4021 76(3) 40623 89[41 40(2) 116/6) 40(2) 179111) 50(3) 6815) 95431 112/4) 1124) 129(5) 146[6) Sample size is too large to be cost-effective for most audit applications. The number in parentheses represents the maximum number of deviations in a sample of that site that allows the auditor to conclude that the tolerable deviation rate is not exceeded TABLE B-8 Statistical Sample Results Evaluation Table (Computed Upper Deviation Rates) for Attribute Sampling-95 Percent Desired Confidence Level Actual Number of Deviations Found 3 4 5 6 0 1 2 9 10 Sample Site 25 30 35 40 45 50 55 60 65 70 75 80 90 11.3 9.5 8.3 73 6.5 5.9 5.4 4.9 4.6 4.2 4.0 3.7 3.3 3.0 2.4 20 17.6 14.9 12.9 11.4 102 9.2 8.4 7.7 7.1 6,6 62 5.8 5.2 4.7 3.8 3.2 2.4 19.6 17.0 15.0 13.4 12.1 11.1 10.2 9.4 8.8 8.2 7.7 6,9 6.2 5.0 4.2 32 18.3 16.4 14.8 135 12.5 11.5 10.8 10.1 9.5 84 76 6.1 5.1 3.9 19.2 17.4 15.9 14.7 13.6 126 11.8 18.8 17.4 16.3 15.2 19.7 11.1 19.9 18.2 16.8 15.5 14.5 13,6 12.7 11.4 10.3 8.3 6.9 52 143 18.5 17.4 15.5 14.0 19.3 18.0 16.9 159 14.2 128 10.3 8.6 6.5 100 9.9 9.0 7.2 60 4.6 128 11.5 9.3 78 5.9 125 150 200 20.0 18.9 168 15.2 12.3 103 7.8 18.2 164 13.2 11.1 8.4 9.5 72 1.5 "Over 20 percent 3 95 O 7.6 8.4