Based on the above information, which company will require a larger sample size and why?

Alpha Manufacturing Ltd and Beta Engineering Ltd both have the same population of purchase invoices of 12,000, the same tolerable deviation rate of 5%, and the same level of reliance placed by the auditor on the operating effectiveness of controls. The only difference between the two companies is the expected deviation rate, which is 2% for Alpha Manufacturing Ltd and 6% for Beta Engineering Ltd. As discussed above, sample size increases when the expected rate of deviation increases. A higher expected deviation rate indicates that the auditor expects more control failures in the population and, therefore, needs to examine a larger number of items to make a reliable estimate of the actual deviation rate. Accordingly, Beta Engineering Ltd will require a larger sample size because its expected deviation rate of 6% is higher than the 2% expected deviation rate of Alpha Manufacturing Ltd.