An Audit Partner Is Developing an Office Training Program to Familiarize

Multiple Choice

An audit partner is developing an office training program to familiarize his professional staff with statistical decision models applicable to the audit of dollar value balances. He wishes to demonstrate the relationship of sample sizes to population size and variability and the auditor's specifications as to tolerable misstatement and risk of incorrect acceptance. The partner prepared the following table to show comparative population characteristics and audit specifications of two populations. You are to indicate for the specified case from the above table the required sample size to be selected from population 1 relative to the sample from population 2. In case 1 the required sample size from population 1 is:

A) Larger than the required sample size from population 2.
B) Equal to the required sample size from population 2.
C) Smaller than the required sample size from population 2.
D) Indeterminate relative to the required sample size from population 2.