You are a staff auditor and you are testing the following control: A sale is recorded only if there is the corresponding shipping document. You are making a statistical sample of payments to be tested. Some relevant information is provided to you by your senior and is as follows:

-- Total number of sales transactions that took place in 2021: 1 million

-- Total sales in 2021: $150 million

-- Tolerable deviation/exception rate: 3%

-- Acceptable Risk of Overreliance: 10%

-- Estimated population deviation/exception rate: 0.25%

a. Determine the minimum sample size based on the above parameters

b. Your senior auditor reviewed your sample size calculation, but also decided to use her judgment in determining the sample size and chose to conduct the tests on 200 sales transactions. You therefore selected the 200 recorded sales and performed the tests. You found five sales recorded which did not have shipping documents. Does the control pass or fail? Justify

c. Based on the result of your test, how many sales recorded in 2021 did not have the required shipping documents?