For tests of details of balances, a lower frequency of misstatements can result in smaller sample sizes.

Question

Quizplus · Accepted Answer

When there is a lower frequency of misstatements, it means that the population is more homogeneous and therefore, the sample size required to achieve a specific level of precision and confidence in the results is likely to be lower. This is because there is less variation to account for in the population, making it easier to detect and correct errors.

For Tests of Details of Balances, a Lower Frequency of Misstatements