For a large population of cash disbursement transactions, Smith, CPA, is testing internal control by using attributes sampling techniques. Anticipating an deviation rate of 3 percent, Smith found from a table that the required sample size is 400 with a desired tolerable deviation rate of 5 percent and risk of assessing control risk too low of 5 percent. If Smith anticipated a deviation rate of only 2 percent, the sample size would be closest to:

Multiple Choice

• 533.

• 400.

• 800.

• 200.