In testing payroll transactions, an auditor discovers that $4$ out of a statistical sample of $100$ selected timecards were not signed by the

appropriate supervisor. To evaluate the materiality or significance of this control deficiency, the auditor should

a$.$ Evaluate the dollar amount of the four timecards in relation to the financial statements.

b$.$ Compare the tolerable deviation rate with the expected deviation rate.

c$.$ Compute an upper precision limit and compare with the tolerable deviation rate.

d$.$ Compute the sample deviation rate and compare to the allowance for sampling risk.

e$.$ Report the deviations and let management assess the significance.