As the expected misstatement is large relative to the tolerable misstatement,the audit team would most likely
A)Increase their degree of reliance on internal controls.
B)Consider the possibility of an increased level of tolerable misstatement.
C)Increase the sample size.
D)Decrease the sample size.

Question

Quizplus · Accepted Answer

When the expected misstatement is large relative to the tolerable misstatement, the audit team would likely increase the sample size to obtain more evidence and reduce sampling risk.

As the Expected Misstatement Is Large Relative to the Tolerable