The smaller the amount of misstatement that the auditor can tolerate, _______.
A)the smaller the sample size
B)the larger the sample size
C)the larger the population size
D)the lower inherent risk becomes

Question

Quizplus · Accepted Answer

When the auditor can tolerate a smaller amount of misstatement, they will generally require a larger sample size to increase the confidence in the audit findings, ensuring that the financial statements are accurately represented.

The Smaller the Amount of Misstatement That the Auditor Can