Solving Questions using IDEA data analysis software

IDEA Audit Sampling Exercises

Answer the question step by step by including the IDEA screens

REQUIRED 941. You have been asked to test the effectiveness of Ingo Corporation's control of manually approving all purchases over $25,000. During the year, h1g0 Corporation has made 1,000,000 purchases, of which 3,000 were over $25,000. Jian Zhang, CPA, your supervisor, asked you to use a tolerable deviation rate of 4 percent (although she expects the rate to be only approximately 0.25 percent) and a 5 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 Deviation Rate Low 2?% Moderate 612% Slightly below the maximum 1120% Maximum Over 20% :1. W210! is the planned assessed level of control risk (low, moderate, slightly below the maximum, or maximum)? I). Use [DEA to determine the appropriate sample size and the allowable number of deviations using IDEA's Beta Risk Control approach (controlling the risk of assessing control risk too low). E. For this part assume that the sample size was 114 items. Use ]DEA to determine replies for the following to determine the assessed level of control risk under each of the assumptions on deviations included in the sample0, 1, or 8. Again use IDEA's Beta Risk control approach (controlling the risk of assessing control risk too low). Circumstance (number of 1 Sided Upper Limit Assessed Level of deviations in sample) (Achieved Upper Control Risk Deviation Rate) 0 1