Four factors determine the initial sample size for audit sampling: 1. TER, tolerable exception rate, 2. ARO, acceptable risk of overreliance, 3. EPER, estimated population exception rate, and 4. Population size if the EPER is high, the ample size will be large it depends on the population distribution small no effect on sample size Four factors determine the initial sample size for audit sampling: 1. TER, tolerable exception rate, 2. ARO, acceptable risk of overreliance, 3. EPER, estimated population exception rate, and 4. Population size if the TER is high, the ample size will be large no effect on sample size O it depends on the population distribution small Whether we perform control tests or substantive tests, ------ provide a framework to help the auditor accumulate sufficient and appropriate evidence. Audit objectives. Confirmations. Monetary tests. COSO framework. In "Burlingham Bees" case, (the case about the minor league team), the group used a formula to build their expectation about the revenue and then they compared it to the actual revenue. They did a good job in explaining how to use analytical procedures as a: Substantive test. Planning tool. Test of details of balances. Substantive test of transactions