Question 6 You are testing internal controls by testing the attributes of the population. Your in-charge accountant has directed you to use a five percent acceptable risk of assessing control risk too low (what the book shortens to ARACR). Based on a sample already drawn from the population, you estimate that the population has an exception rate of about 1.5% to 2.0%, but you are not sure what the true exception rate is; you just think that it is somewhere in that range. After discussion with the in-charge accountant, the two of you decide that for purposes of the audit, you can tolerate an exception rate of five percent, because there are additional controls which kick in later in the process. Required: a. What sample size do you need? b. If you actually find five exceptions in your test of the sample, can you conclude that there is at least a 95% probability that the true exception rate in the population is five percent or lower? Explain your answer. (Teacher's note: A simple "yes" or "no" without further explanation will receive a grade of zero. Even if your answer is correct, you will not receive credit unless you can properly explain your answer.)