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During the audit planning of Vailoaoi Ltd, a manufacturer of miniature water fountains, the audit team highlighted the following matters:
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During the audit planning of Vailoaoi Ltd, a manufacturer of miniature

water fountains, the audit team highlighted the following matters:

-The audit partner wishes to place greater reliance on the control structure of non-current assets, arguing that the control risk assessment can be decreased from medium to low if adequate control testing is performed.
-Your client has warehouses in both Port Vila and Santo. In the previous year the audit team attended a stocktake at only the Port Vila warehouse. One substantive stocktake procedure involved a selection of 50 items from the inventory report. Three errors were identified and projected over the whole population. This year the manager has suggested testing both sites.
-A number of inventory cut-off errors were noted in the previous year. The planning process has identified that this may be an issue this year.
-Even though the value has remained constant, the number of debtors' accounts has doubled from 900 to 1800 in the last year.Required: 
Discuss the effect of each of the above matters on the auditor's selection of sample size and population for testing.

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Subject: Accounting, Business

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