Which of the following would not cause the audit team to select a larger sample of items under a monetary unit sampling application?
A) A reduction in the risk of incorrect acceptance from 10 percent to 5 percent.
B) An increase in the tolerable misstatement from $30,000 to $60,000.
C) An increase in the expected misstatement from $20,000 to $40,000.
D) All of the above would result in selecting a larger sample.

Question

Quizplus · Accepted Answer

An increase in the tolerable misstatement allows for a larger error margin, which would typically result in a smaller sample size, not a larger one.

Which of the Following Would Not Cause the Audit Team