1. Which of the terms below is used to indicate the dollar amount of error that can exist in an account without the auditor coming to the conclusion that the account balance is materially misstated? (a) Standard deviation (b) Achieved precision. (c) Tolerable error. (d) Allowance for sampling risk. 2 Which of the these combinations will produce the largest sample size using dollar unit (probability proportional to size) sampling? Risk of Incorrect Recorded Tolerable AcceptanceErrors Amount Misstatement 0.05 0.10 0.05 0.06 $1,000,000 50,000 $1,500,000 S 65,000 $1,000,000 S 35,000 $1,500,000 S65,000 4 0 To verify that all sales transactions have been recorded, a substantive test of transactions should be completed on a representative sample drawn from: (a) A file of duplicate copies of sales invoices for which all prenumbered 3. (b) (c) (d) forms in the series have been accounted. Entries in the sales journal. The billing clerk's file of sales orders. The shipping clerk's file of duplicate copies of bills of lading