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 $4$ percent $($although she expects the rate to be only approximately $0\mathrm{.}75$ 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.

$($Planned$)$ Assessed Level of Control Risk Tolerable Deviation Rate

Low $27\%$

Moderate $612\%$

Slightly below the maximum $1120\%$

Maximum Over $20\%$

a$.$ What is the planned assessed level of control risk?

multiple choice

Low

Moderate

Slightly below the maximum

Maximum

b$.$ Determine the appropriate sample size and allowable number of deviations using Figure $9\mathrm{.}4.$

Sample Size

Allowable Number of deviations

c$.$ Use Figure $9\mathrm{.}5$ to determine the achieved upper deviation rate and the above table to determine the assessed level of control risk under the following circumstances. Assume that the sample size was $150$ items. $($Round your answers to $1$ decimal place.$)$

Achieved Upper Deviation Rate Assessed level of control Risk

No deviations were included in the samle. $\_\_\_\_\_\%\_\_\_\_\_\_\_\%$

One deviation is included in the sample. $\_\_\_\_\_\_\%\_\_\_\_\_\_\_\_\%$

Eight deviations were included in the sample.$\_\_\_\_\_\%\_\_\_\_\_\_\_\%$