Sample size increases as the:
A) risk of assessing control risk too high increases.
B) risk of assessing control risk too low decreases.
C) tolerable rate of deviation increases.
D) All of the above.

Question

Quizplus · Accepted Answer

As the sample size increases, the risk of assessing control risk too low decreases. This is because a larger sample size provides more representative evidence about the true operating effectiveness of the control. Increasing the sample size does not affect the risk of assessing control risk too high or the tolerable rate of deviation. Therefore, option B is the best choice.

Sample Size Increases as The