In the audit of account balances, the sample size will tend to be smaller when the
A)Risk of incorrect acceptance is lower.
B)Risk of incorrect rejection is lower.
C)Tolerable misstatement is smaller.
D)Population variability is smaller.

Question

Quizplus · Accepted Answer

When population variability is smaller, there is less uncertainty, allowing auditors to use a smaller sample size to achieve the same level of confidence in their conclusions.

In the Audit of Account Balances, the Sample Size Will