Which of the following statements is correct concerning statistical sampling in tests of controls?
A)Deviations from control procedures at a given rate usually result in misstatements at a higher rate.
B)As the population size doubles,the sample size should also double.
C)The qualitative aspects of deviations are not considered by the auditor.
D)There is an inverse relationship between the sample size and the tolerable rate of deviation.

Question

Quizplus · Accepted Answer

There is an inverse relationship between the sample size and the tolerable rate of deviation. This means that as the sample size decreases, the tolerable rate of deviation must be decreased in order to maintain an acceptable level of risk. Therefore, larger sample sizes provide more reliable results and allow for a higher tolerable rate of deviation.

Which of the Following Statements Is Correct Concerning Statistical Sampling