The sample size for a direct test of a balance should be based on the auditor's consideration of 1. Tolerable error 2. Risk of incorrect acceptance 3. Population characteristics

Required: 

For each of the considerations listed-

a. Define the concept or term.

b. Identify whether the auditor's quantification of the consideration to determine sample size in a specific circumstance is based primarily on professional judgment, professional standards, or past experience with the client.