When using a statistical sampling plan for a test of controls, the auditor would probably require a smaller sample if the:
A) tolerable deviation rate decreases.
B) population increases.
C) expected deviation rate increases.
D) allowable risk of over-reliance increases.

Question

Quizplus · Accepted Answer

If the allowable risk of over-reliance increases, the auditor can accept a higher risk of concluding that controls are effective when they are not, which allows for a smaller sample size.

When Using a Statistical Sampling Plan for a Test of Controls