Calgari Clothing Company manufactures high-quality silk ties that are marketed under a number of trademarked names. Joe & Vandervelte have been the company's auditors for five years. Lisa Austen, the senior-in- charge of the audit, has reviewed Calgari's controls over purchasing and inventory, and she determined that a number of controls can be relied upon to reduce control risk. Austen has decided to test two control proce- dures over purchases and inventory: (1) purchase orders are agreed to re- ceiving reports and vendor's invoices for product, quantity, and price and (2) inventory is transferred to raw material stores using an approved, prenumbered receiving report. Austen decided to use a nonstatistical sampling approach based on the following judgments for each control procedure and has judgmentally decided to use a sample size of 40 purchase orders for control 1 and 20 receiving reports for control 2. lop85