Question: What are the probable consequences of taking a preliminary sample size that is smaller than actually needed in the circumstance described in 7-4? What are

What are the probable consequences of taking a preliminary sample size that is smaller than actually needed in the circumstance described in 7-4? What are the probable consequences of taking a preliminary sample size that is larger than actually needed? Draw a general conclusion from your answers.

7-4:

Assume that an auditor decides to use unstratified mean-per-unit estimation to estimate the value of inventory in cooperation with a client. The client has not taken a complete physical inventory because of the high cost of doing it. Why is mean-per-unit preferable to difference and ratio estimation in this situation ?

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