You have been asked to test the effectiveness of Ingo Corporations 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 5 percent (although she expects the rate to be only approximately 1.00 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.

b. Determine the appropriate sample size and allowable number of deviations

c. Determine the achieved upper deviation rate - Assume that the sample size was 80 items.

1. no deviations were included in sample
2. one deviation is included
3. eight deviations were included