I'm entering the Sample Size (90) with Seven deviations were included in the sample, but it's giving me the red "X" error message. What am I missing?
You have been asked to test the effectiveness of Ingo Corporation's control of manually approving all purchases over $25,000. During 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 0.75 percent) and a 5 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. Tolerable Deviation (Planned ) Assessed Level of Control Risk Rate Low 2-7% Moderate 6-12% Slightly below the maximum 11-20% Maximum Over 20% a. What is the planned assessed level of control risk? Low O Moderate O Slightly below the maximum O Maximum b. Determine the appropriate sample size and allowable number of deviations using Figure 9.4. Answer is complete and correct. Sample size 93 items Allowable number of deviationsFIGURE 9.4 Statistical Sample Sizes for Tests of Controls at 5 Percent Risk of Assessing Control Risk Tun Law (with Allowable Number of Deviations in Parentheses) Expected Population Tolerable Deviation Rate Deviation Rate (As Percentages) 2% 3% 4% 5% 6% 2% 8% 9% 10% 15% 20% 0.00% 149(0) 99(0) 24(0) 59(0) 49(0) 42 (0) 36(0) 32(0) 29(0) 19(0) 14(0) 0.25 236(1) 152(1) 112(1) 93(1) 28(1) 66(1) 58(1) 51(1) 46(1) 30(1) 22(1) 0.50 * 152(1) 112(1) 93(1) 28(1) 66(1) 58(1) 51(1) 46(1) 30(1) 22(1) 0.25 208(2) 112(1) 93(1) 28(1) 66(1) 58(1) 51(1) 46(1) 30(1) 22(] 1.00 ' * 156(2) 93(1) 28(1) 66(1) 58(1) 51(1) 46(1) 30(1) 22(1) 1.25 * 156(2) 124(2) 28(1) 66(1) 58(1) 51(1) 46(1) 30(1) 22(1) 1.50 ' * 192(3) 124(2) 103(2) 66(1) 58(1) 51(1) 46(1) 30(1) 22(1) 1.25 222(4) 153(3) 103(2) 88(2) 22(2) 51(1) 46(1) 30(1) 22(1) 2.00 ' * 181(4) 122(3) 88(2) 22(2) 68(2) 46(1) 30(1) 22(1) 2.25 208(5) 122(3) 88(2) 22(2) 68(2) 61(2) 30(1) 22(1) 2.50 ' 150(4) 109(3) 22(2) 68(2) 61(2) 30(1) 22(1) 2.25 123(5) 109(3) 95(3) 68(2) 61(2) 30(1) 22(1) 3.00 ' 195(6) 129(4) 95(3) 84(3) 61(2) 30(1) 22(1) 3.25 148(5) 112(4) 84(3) 61 (2) 30(1) 22(1) 3.50 ' 162(6) 1 12(4) 84(3) 26(3) 40(2) 22(1) 3 .25 185(2) 129(5) 100(4) 26(3) 40(2) 22( 1) 4.00 ' * 146(6) 100(4) 89(4) 40(2) 22(1) 5 .00 * * 158(8) 1 16(6) 40(2) 30(2) 6.00 ' * * '1' 129(11) 50(3) 30(2) 2.00 * * * * 68(5) 32(3) Note: This table assumes 9. large population. * Sample size is too large so be costefctive four most audit 11991113360115. Salute: AICPA. Audi: Guide; Audi! Sampir'ng (New Yuri; 2014)
