in the dialogue between the kingston auditors, Fred said, "our analytical procedures related to receivable didn't show much (APR 100%). the total is down, consistent with the sales with the sales decline, so the turnover is up a little. if any misstatement in the receivable total, it may be too small to be obvious in the ratio"

Jill replied, " that is the good news if the problems are immaterial. too bad we can't say analytical procedures reduce our audit risk. what about internal control?"

Fred responded: " i'd say it is about a 50-50 proposition (50%). sometimes control seemed to work well; sometimes it didn't. i noticed a few new people doing the invoice processing last week when we were here for a conference. incidentally, i lump the inherent risk problems and internal control risk problems together when i think aobut internal control risk. therefore (IR100%). anyway, firm policy is to plan a sample for a low overall audit risk (1%) for the receivable."

a. based on this dialogue information, use the expanded risk model to determine a test of detail risk

b. relate this risk to sample size determination. what type of relationship does the Risk of incorrect acceptance have with the amount of evidence required?