The following information relates to a non-statistical sample used for a price test of inventory conducted by an audit assistant:

	Population Information		Sample Information
	Number of items	Amount	Number of Items	Amount	Misstatement
Greater than $10,000	25	$1,200,000	25	$1,200,000	$710
Less than $10,000	160	$1,050,000	20	$ 95,000	$265
Total	185	$2,250,000	45	$1,295,000	$975

c) Which misstatement would be of a greater concern, items > $10,000 or items < $10,000?

d) What can a public accounting firm do to reduce the sampling risk?

e)What can a public accounting firm do to reduce the nonsampling risk?