Question: consider 2,000 observations. Suppose these represent all purchase orders for the year exceeding $3,000. Describe an internal control for this population of purchase orders. Any

consider 2,000 observations. Suppose these represent all purchase orders for the year exceeding $3,000.

  1. Describe an internal control for this population of purchase orders. Any internal control would do.

  1. Suppose that the tolerable deviation rate for the control for this population is 10 percent. Based on the number of deviations observed in the population, should we rely on the controls? Explain in about 100 words.

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