Question is based on the following information:An auditor desired to test credit approval...

Question is based on the following information:

An auditor desired to test credit approval on 10,000 sales invoices processed during the year. The auditor designed a statistical sample that would provide 1 percent risk of assessing control risk too low for the assertion that not more than 7 percent of the sales invoices lacked approval. The auditor estimated from previous experience that about  percent of the sales invoices lacked approval. A sample of 200 invoices was examined, and 7 of them were lacking approval. The auditor then determined the computed upper deviation rate to be 8 percent.

Based on the information above, the planned allowance for sampling risk was

a.  percent.

b.  percent.

c.  percent.

d. 1 percent.