Michelle Napali, CPA is performing an attributes sampling plan for her audit of Memphis Company. In her audit of cash disbursement, she has identified preparing a voucher and marking it as "paid" prior to preparing and mailing a check to the vender as an important control. Memphis defined any voucher that was not marked as "paid" as being a deviation.

Michelle established the following parameters:

Risk of overreliance $($sampling risk$)$: $10\%$

Expected deviation rate: $2\%$

Tolerable rate of deviation $4\%$

a$.$ Based on the above parameters, use Exhibit $8\mathrm{.}5$ to determine the appropriate sample size. Show the rationale and answer. Hint: Refer to Module $4$ slides which provide the guidance over how to select the appropriate sample size.

b$.$ If Michelle selected the sample size in part $($a$)$ and found five deviations, what is the sample rate of deviation $($which is # of deviation divided by the sample size$).$ Show rationale and answer.

c$.$ Using Exhibit $8\mathrm{.}6,$ determine the ULRD and indicate the control is effective or effective. Show rationale and answer. Note: If the sample size cannot be directly located on the sample evaluation table, round down to the next highest sample size.