1. Assuming an excellent system of internal controls exists, which of the following audit procedures would be least likely to be performed?

1. Physical inspection of a sample of inventory
2. Search for unrecorded cash receipts
3. Obtain a client representation letter
4. Confirmation of accounts receivable
   2. Of the four factors which determine the initial sample size (population size, tolerable exception rate, acceptable risk of overreliance, and expected population exception rate), which combination of two factors has the greatest effect on sample size?
      1. Population size times expected population exception rate
      2. Expected population exception rate plus acceptable risk of overreliance
      3. Tolerable exception rate minus expected population exception rate
      4. Acceptable risk of overreliance minus tolerable exception rate