An audit partner is developing an office training program to familiarize his professional staff with difference estimation applicable to the audit of dollar- value balances. He wishes to demonstrate the relationship of sample sizes to population size and variability and the auditor’s specifications as to precision and confidence level. The partner prepared the table below to show comparative population characteristics and audit specifications of two populations. In items (i) through (v) below, you are to indicate for the specific case from the table, the required sample size to be selected from population 1 relative to the sample from population 2. Your answer choice should be selected from the following responses:

(i) Larger than the required sample size from population 2

(ii) Equal to the required sample size from population 2

(iii) Smaller than the required sample size from population 2 (iv) Indeterminate relative to the required sample size from population 2

a. In case 1, the required sample size from population 1 is______.

b. In case 2, the required sample size from population 1 is______.

c. In case 3, the required sample size from population 1 is______.

d. In case 4, the required sample size from population 1 is______.

e. In case 5, the required sample size from population 1 is______.

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Characteristics of population 1 relative to population 2 Audit specifications as to a sample from population 1 relative to a sample from population 2 Acceptable Specified precision confidence Size Variability interval Level Case 1 Equal Equal Equal Higher Case 2 Equal Larger Wider Equal Case 3 Larger Equal Narrower Lower Case 4 Smaller Smaller Equal Lower Case 5 Larger Equal Equal Higher