Which of the following factors used to determine sample size is normally based on the extent to which the audit team expects to rely on the internal control being examined?
A) Allowance for sampling risk.
B) Expected population deviation rate.
C) Sample rate of deviation.
D) Tolerable rate of deviation.

Question

Quizplus · Accepted Answer

The tolerable rate of deviation is normally based on the extent to which the audit team expects to rely on the internal control being examined. It represents the maximum rate of deviation from the control that can be accepted without causing the audit objective to be at risk of not being achieved. Therefore, the tolerable rate of deviation affects the sample size determination.

Which of the Following Factors Used to Determine Sample Size