During the auditing planning of TKD Ltd, a manufacturer of blank video cassettes, the audit team highlighted the matters listed below:

1. The audit partner wishes to place greater reliance on the control structure of fixed assets. The audit partner feels the control risk assessment can be decreased from medium to low if adequate control testing is performed.

2. Your client has warehouses in both Newtown and Oldtown. You note that in the previous year the audit team attended a stock-take at the Newtown warehouse only. One substantive stock-take procedure involved a selection of 50 items from the stock report. Three errors were identified which were projected over the whole population.

This year the manager has suggested that both sites will be tested.

3. In the prior year it was noted that there were a number of stock cut-off errors. As part of your planning, you have identified this may be an issue in the current year.

4, Even though the value has remained constant, the number of debtors’ accounts has doubled from 800 to 1,600 in the last year.

Required

Discuss the effect each of the above matters will have on the sample sizes and population selection.