Jamie Plane is testing the effectiveness of an important control for Blackheart Inc. Plane is...
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Accounting
Jamie Plane is testing the effectiveness of an important control for Blackheart Inc. Plane is placing a high level of reliance on this control and has assessed a relatively low risk of overreliance (5 percent) and tolerable rate of deviation (6 percent). Based on the acceptable risk of overreliance, expected population deviation rate, and tolerable rate of deviation, Plane determined a sample size o 60 items. The tests of controls revealed three deviations.
A. Calculate the sample rate of deviation.
B. Using the AICPA sample evaluation tables, calculate the ULRD and allowance for sampling risk.
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