Use the graph to answer the following four questions:

1) An auditor is testing a control with statistical sampling and determines the expected population deviation rate to be 2% and the tolerable deviation rate to be 7%. The auditor confirms there are 3 deviations found within the sample. What sample size did the auditor choose based on the given information? ___

2) An auditor is testing a control with statistical sampling and determines the expected population deviation rate to be 2% and the tolerable deviation rate to be 7%. The auditor confirms there are 3 deviations found within the sample. What is the achieved upper deviation limit as a result of the testing? ___

3) An auditor is testing a control with statistical sampling and determines the expected population deviation rate to be 2% and the tolerable deviation rate to be 7%. The auditor confirms there are 3 deviations found within the sample. True or False: The Auditor should confirm this control is operating effectively. ___

4) An auditor is testing a control with statistical sampling and determines the expected population deviation rate to be 2% and the tolerable deviation rate to be 7%. The auditor confirms there are 3 deviations found within the sample. If the total population is 3,000 units, how many units may be deviant and still allow the auditor to be 90% confident that they drew the appropriate conclusion about the control? ___

10% Risk of Assessing Control Risk Too Low Actual Number of Deviations Found Sample Site 0 + 2 3 5 6 7 8 305 361 512 100 28 . 584 245 300 1. tas 360 60 10. 74 10 24 340 28. 349 22:0 10.7 14 50 50 46 100 43 100 10 20 as 30 35 40 45 50 55 60 65 70 75 BO 17 19 10 6. 103 9.4 225 30.5 30.5 213 24 220 30 203 303 1.4 10. 157 141 3* 15 15.0 . 129 5.9 55 10 0.0 95 5.0 75 70 120 TU 10 175 13 3-5 38 19-3 18.0 13. 12. 1 13 15 45 28 23 90 100 125 150 59 55 43 103 123 10.3 30 6.5 93 06 53 44 5.4 61 10 53 200 30 40 10% Risk of Assessing Control Risk Too Low Tolerable Deviation Rate (Number of Expected Errors) Expected Population Deviation Rate (%) 2% 3% 4% 5% 6% 7% 8% 9% 10% 25 (0) 0.00 0.50 1.00 42 (1) 114 (0) 76 (0) 1941) 129 (1) 398 (4) 176 (2) 1.463 (22) 265 (4) 590 (12) 4261) 57 (0) 96 (1) 96 (1) 132 (2) 198 (4) 353 (9) 45 (0) 38 (0) 7761) 646) 7701) 640) 105 (2) 640) 132 (3) 88 (2) 158 (1) 10 (3) 258 (8) 132 (4) 873 (35) 274 (1) 1.010 (51) 1.50 2.00 2.50 3.00 4.00 5.00 6.00 42 (1) 4200 32 (0) 28 (0) 55 (1) 48 (1) 55 (1) 48 (1) 55 (1) 48 (1) 75 (2) 48 (1) 75 (2) 65 (2) 94(3) 65 (2) 149 (6) 98 (4) 318 (16) 160 (8) 1150 (69) 349 (21) 22 (0) 38 (1) 38 (1) 38 (1) 38 (0) 30 (1) 52 (2) 65 (3) 78 (4) 116 (7) 730 (22) III III!! }}} 58(2) 58 (2) 73 (3) 115 (6) 182 (11) II -- 10% Risk of Assessing Control Risk Too Low Actual Number of Deviations Found Sample Site 0 + 2 3 5 6 7 8 305 361 512 100 28 . 584 245 300 1. tas 360 60 10. 74 10 24 340 28. 349 22:0 10.7 14 50 50 46 100 43 100 10 20 as 30 35 40 45 50 55 60 65 70 75 BO 17 19 10 6. 103 9.4 225 30.5 30.5 213 24 220 30 203 303 1.4 10. 157 141 3* 15 15.0 . 129 5.9 55 10 0.0 95 5.0 75 70 120 TU 10 175 13 3-5 38 19-3 18.0 13. 12. 1 13 15 45 28 23 90 100 125 150 59 55 43 103 123 10.3 30 6.5 93 06 53 44 5.4 61 10 53 200 30 40 10% Risk of Assessing Control Risk Too Low Tolerable Deviation Rate (Number of Expected Errors) Expected Population Deviation Rate (%) 2% 3% 4% 5% 6% 7% 8% 9% 10% 25 (0) 0.00 0.50 1.00 42 (1) 114 (0) 76 (0) 1941) 129 (1) 398 (4) 176 (2) 1.463 (22) 265 (4) 590 (12) 4261) 57 (0) 96 (1) 96 (1) 132 (2) 198 (4) 353 (9) 45 (0) 38 (0) 7761) 646) 7701) 640) 105 (2) 640) 132 (3) 88 (2) 158 (1) 10 (3) 258 (8) 132 (4) 873 (35) 274 (1) 1.010 (51) 1.50 2.00 2.50 3.00 4.00 5.00 6.00 42 (1) 4200 32 (0) 28 (0) 55 (1) 48 (1) 55 (1) 48 (1) 55 (1) 48 (1) 75 (2) 48 (1) 75 (2) 65 (2) 94(3) 65 (2) 149 (6) 98 (4) 318 (16) 160 (8) 1150 (69) 349 (21) 22 (0) 38 (1) 38 (1) 38 (1) 38 (0) 30 (1) 52 (2) 65 (3) 78 (4) 116 (7) 730 (22) III III!! }}} 58(2) 58 (2) 73 (3) 115 (6) 182 (11)