1. Which of the following will have a negligible effect on the sample size when testing transactions and balances?

A. the number of sampling units in the population

B. an increase in the use of other substantive procedures directed at the same assertion

C. an increase in the auditors assessment of the risk of material misstatement

D. a decrease in the tolerable misstatement

2. Which of the following describes stratification?

A. increases audit risk

B. classified as a non-statistical sampling technique

C.cannot be used with random selection

D. improves audit efficiency