You are planning a test of a payroll control. You have established the following parameters:

Risk of incorrect acceptance=10%

Tolerable deviation rate=6%

Expected deviation rate=2%

1. What should your sample size be for this test?
2. After testing the control, you note that you identified 4 deviations in your testing. What is the sample deviation rate for the test?
3. What is the upper deviation limit for the test?
4. Now it is time to draw a conclusion on whether the control is operating effectively or not. What conclusion do you draw? (Effective or Ineffective).