An audit partner is developing an office training pro¬ gram to familiarize her professional staff with statistical deci¬ sion models applicable to the audit of dollar-value balances. She wishes to demonstrate the relationship of sample sizes to population size and variability and the auditor's specifica¬ tions as to tolerable misstatement and ARIA. The partner prepared the table on page 341 to show comparative popula¬ tion characteristics and audit specifications of the two popu¬ lations.

Required In items (1) through (5) below, you are to indicate for the spe¬ cific case from the table that follows the required sample size to be selected from population 1 relative to the sample from population 2.

(1) In case 1 the required sample size from population 1 is

(2)In case 2 the required sample size from population 1 is (3)In case 3 the required sample size from population 1 is (4)In case 4 the required sample size from population 1 is (5)In case 5 the required sample size from population 1 is Your answer should be selected from the following responses:

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.

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TABLE FOR PROBLEM 11-22 CHARACTERISTICS OF POPULATION 1 RELATIVE TO POPULATION 2 Estimated AUDIT SPECIFICATIONS AS TO A SAMPLE FROM POPULATION 1 RELATIVE TO A SAMPLE FROM POPULATION 2 Size Population Exception Rate Tolerable Misstatement ARIA Case 1 Equal Equal Equal Lower Case 2 Equal Larger Larger Equal Case 3 Larger Equal Smaller Higher Case 4 Smaller Smaller Equal Higher Case 5 Larger Equal Equal Lower