Question 1
Which of the following conditions would lead to a larger sample size?
◦ larger tolerable misstatement
◦ low inherent risk
◦ high control risk
◦ smaller account balance
Question 2
Which of the following does
not have to be considered in determining the initial sample size of a test of details?
◦ tolerable misstatement
◦ acceptable risk of incorrect rejection
◦ estimate of misstatements in the population
◦ inherent risk