Dennis, a CPA, has selected a sample of 50 sales transactions. The sample size was based on the CPA's judgment rather than statistically estimated but selected using a random number table. However, Dennis, since planning the audit, has taken a continuing education course on audit sampling and has decided to evaluate all audit samples statistically. The first selected sales transaction examined disclosed a deviation. 

Required:

a. Is it acceptable for Dennis to statistically evaluate the results of a sample whose size was determined judgmentally?

b. Without regard to your answer to a, make a statistical evaluation of finding 1 deviation in a sample of 50 assuming that Dennis believes a 10 percent risk of assessing control risk too low and a tolerable rate of 5 percent are appropriate for assessing control risk at a low level.

c. If the first transaction in a sample of 50 discloses a deviation, is it necessary to apply the planned procedures to the remaining items (assuming the same evaluation criteria as stated in b)?

d. Based on the evaluation criteria stated in b, what alternatives or options does Dennis have if the first transaction in a sample of 50 disclosed a deviation?