Required
a. The risk of assessing control risk too low is 10%. Determine the sample size for each of the following controls:

b. Explain why the sample sizes for controls 2 and 3 are different from those for control 1.
c. What is the general effect on sample size of using a 10% risk of assessing control risk too low rather than 5%? Explain.
d. Would it be better to use the individual sample sizes in part (a) or to use the largest for all five controls? Explain.
e. Assume a sample size of 80 is used for all five controls. Determine the achieved upper limit of failures in the population for each control and complete the table in part (a).
f. Based on the answers to part (e), on which of the controls can the auditor place the planned degree of reliance?Why?

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Tolerable Rate (%) Expected Rate (%) Sample Number of Achieved Control Size Failures Upper Limit 10 0.5 10