Which of the following factors that affect sample size can be determined by considering the recorded account balance of the account or class of transactions as well as the relationship between the recorded account balance or class of transactions with important financial statement subtotals?
A) Expected error.
B) Population size.
C) Risk of incorrect acceptance.
D) Tolerable misstatement.

Question

Quizplus · Accepted Answer

Tolerable misstatement is determined by considering the recorded account balance or class of transactions and its relationship with important financial statement subtotals, as it represents the maximum error in a financial statement that an auditor is willing to accept.

Which of the Following Factors That Affect Sample Size Can