Use the materials we learned from textbook Chapter 9 to answer the following questions:

You are the auditor, who is being asked to test the effectiveness of Wilo corporation's control of approving expense reimbursements over $5,000. Throughout the year, Wilo has 2 million expense reports for reimbursement, of which 6,000 are over $5,000. You were told to use a tolerable deviation rate of 4% ( although the expected deviation rate is only 0.25% ) and a 5% risk of assessing control risk too low.

Use the textbook material (page 376 under the heading "Specify the Risk of Assessing Control Risk Too Low and the Tolerable Deviation Rate") to determine the planned assessed level of control risk and assessed level of control risk.

1. Use Figure 9.4 (can be found on the textbook or Chapter 9 outline) to determine the sample size. What is the sample size?

2. Use the table on Page 376(can also be found on outline Chapter 9-6). What is the planned level of control risk?

3. What is the assessed level of control risk if 2 deviations were found.

4. What is the assessed level of control risk if 5 deviations were found.

5. What is the assessed level of control risk if 10 deviations were found.