Types of sampling risk

Question

Part I: Sampling Risks
The two types of sampling risks auditors face include the risk of incorrect acceptance and the risk of incorrect rejection. What do each of these mean and how will each impact the audit process and the audit results? Which do you consider the more important risk?

Part II: Revenue Process Misstatements
The revenue cycle requires regular review. Identify at least two types of misstatements found in the revenue process. Next, identify a sound, timely internal control to detect and correct this misstatement.

Part III: Material Misstatement in the Purchasing Process
Managing the risk of material misstatement in the purchasing process is critical. Identify two different industries and analyze how these risks differ from one industry to the other. Also, identify internal controls that could help to keep these misstatements to a minimum.

 Part IV: Audit Risk and Sampling
Prepare a 2–3 page report that addresses the requirements specified in the case. Fully address each requirement and include at least two current references to scholarly and/or authoritative sources.
Instructions
Specifically you will be required to:
Explain the effects on the account of the opening of the first retail store.
Describe how the business change will affect audit risk components.
Determine expected changes to inventory transactions and balances and specify which will be most affected by the business structure change.
Describe the population(s) and recommend a sampling approach for substantive inventory testing.

Use at least two current, quality academic or authoritative sources in this assignment. Note: Wikipedia and similar websites do not qualify as quality scholarly and/or authoritative sources.

The specific course learning outcome associated with this assignment is:
Determine the impact of a change in business structure on audit risk, inventory transactions, and balances using a given sampling approach.