Patrizia Montani is considering the sample size needed for a selection of sales invoices relating to the test of internal controls of the Caistor Company She is determining the acceptable risk and deviation rates, and is considering two possible scenarios as shown in table 6 7 Required In which of the two cases should Patrizia select a larger sample size RISK OR DEVIATION RATE Acceptable risk of underreliance Acceptable risk of overreliance Tolerable deviation rate Expected population deviation rate CASE A CASE B Low High High High Low Low Low High

Question: Patrizia Montani is considering the sample size needed for a selection of sales invoices relating to the test of internal controls of the Caistor Company.

Patrizia Montani is considering the sample size needed for a selection of sales invoices relating to the test of internal controls of the Caistor Company. She is determining the acceptable risk and deviation rates, and is considering two possible scenarios as shown in table 6.7.

RISK OR DEVIATION RATE Acceptable risk of underreliance Acceptable risk of overreliance Tolerable deviation rate Expecte

Required

In which of the two cases should Patrizia select a larger sample size?

RISK OR DEVIATION RATE Acceptable risk of underreliance Acceptable risk of overreliance Tolerable deviation rate Expected population deviation rate CASE A CASE B Low High High High Low Low Low High

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