Question: 2. Determine sample size based on the following audit judgments. a. Tolerable misstatement is assessed at $325,000. b. The risk of incorrect acceptance is assessed

2. Determine sample size based on the following audit judgments.

a. Tolerable misstatement is assessed at $325,000.

b. The risk of incorrect acceptance is assessed at 37 percent.

c. Anticipated misstatement is assessed at $100,000.

3. Develop a scenario that is consistent with setting the risk of incorrect acceptance at 37 percent.

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