Question - Read the article in The CPA Journal December 2011"Auditing Internal Controls in Small Populations" by Julian E. Jacoby and Neal B. Hitzig.
Based on your reading of the article, answer the following questions.
a. What is the nature of most infrequently operating controls, why is it important for the auditor to est these controls?
b. What are the factors that the auditor should consider in determining the extent of tests of controls?
c. Why do the authors believe the existing guidance for small populations results in sample sizes that are too small?
d. Explain the sampling approach the authors recommend be used to test small populations. Include comparison of recommended sample size ranges under this approach to those recommended in the AICPA Audit Sampling Audit Guide.