Which of the following set of conditions would provide the auditor the smallest sample size under monetary unit sampling (MUS)(RIA = risk of incorrect acceptance,TM = tolerable misstatement,PS = population size)?
A) RIA = 5%, TM = $15,000, PS = $200,000.
B) RIA = 5%, TM = $10,000, PS = $200,000.
C) RIA = 5%, TM = $10,000, PS = $100,000.
D) RIA = 5%, TM = $15,000, PS = $300,000.

Question

Quizplus · Accepted Answer

A smaller RIA leads to a larger sample size, a smaller TM leads to a smaller sample size, and a smaller PS leads to a smaller sample size. Among the given options, option C has the smallest population size. Therefore, option C provides the auditor with the smallest sample size.

Which of the Following Set of Conditions Would Provide the Auditor