SPANIEL part a) Kaplan kit June 13 (A)

See page 55 of the notes: "Significant risk – a risk of misstatement which is close to the upper end of the spectrum of inherent risk OR treated as significant [i.e. PRESUMED] in accordance with an ISA (e.g. revenue recognition)." ISA 240 says revenue recognition should be PRESUMED to be a significant risk except in the simplest of cases - what you have quoted is the simplest of cases - i.e. a single revenue stream.

It doesn't say traditional techniques "don't work" - it just says the risk is increased. So if you sample 60 items from a population of 1 million you would expect the risk to be higher than the risk of sampling 60 items from 1,000 - "intuitive" as you say.