Problem

Rome, CPA, is examining the internal control of Smack, Inc. Rome has established a risk of...

Rome, CPA, is examining the internal control of Smack, Inc. Rome has established a risk of overreliance of 10%, an expected population deviation rate of 1%, and a tolerable rate of deviation of 5%.

Ignore your answer to question 85. Assume that a sample of 100 items was examined and 5 deviations were noted. What is the upper limit rate of deviation?

A. 5.0 percent.

B. 9.1 percent.

C. 10.0 percent.

D. 10.3 percent.

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