You have been assigned to the audit of Fantasy Ride Ltd for the year ended 30 June 2018. You have conducted audit procedures to test the following controls related to Fantasy Rids revenue process.

1. Accounts receivable clerk compares quantity on sales invoice to shipping documents.

2. Sales manager approved prices on invoices.

You have decided to use a sampling approach based on the following judgement for each control.

Control	Required confidence level %	Tolerable deviation rate %	Expected number of errors
1	95	5	0
2	90	8	2

As a result of your testing, you obtained 4 deviations for control 1 and 2 deviation for control 2

Required:

a. Determine the initial sample size to test each of the controls detailed above.

b. What should you concluded about each control? Justify your answer.

You have decided to use a sampling approach based on the following judgement for each control.