You have been asked to test the effectiveness of Ingo Corporation's control of manually approving...
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Accounting
You have been asked to test the effectiveness of Ingo Corporation's control of manually approving all purchases over $ During the year, Ingo Corporation has made purchases, of which were over $ Jian Zhang, CPA, your supervisor, asked you to use a tolerable deviation rate of percent although she expects the rate to be only approximately percent and a 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
a What is the planned assessed level of control risk?
LoW
Moderate
Slightly below the maximum
Maximum
b Determine the appropriate sample size and allowable number of deviations using Figure
c Use Figure 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 items.
Note: Round your answers to decimal place.
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