Carson,CPA,judged that his test of controls of the company's 10,000 sales transactions should be based on a risk of overreliance of 10%,a tolerable rate of deviation of 8%,and an expected population deviation rate of 3.75%.Using the AICPA Sample Size tables,which of the following modifications would not affect Carson's sample size?
A)Decrease in the risk of overreliance from 10% to 5%.
B)Increase in the tolerable rate of deviation from 8% to 10%.
C)Increase in the expected population deviation rate from 3.75% to 4%.
D)Decrease in the tolerable rate of deviation from 8% to 7%.

Question

Quizplus · Accepted Answer

According to AICPA Sample Size tables, an increase in the expected population deviation rate would require an increase in the sample size. However, decreasing the risk of overreliance, increasing the tolerable rate of deviation, or decreasing the tolerable rate of deviation would all require a decrease in the sample size. Therefore, only choice C (an increase in the expected population deviation rate) would not affect Carson's sample size.

Carson,CPA,judged That His Test of Controls of the Company's 10,000