Auditing a larger sample reduces the probability of reaching a wrong conclusion about the effectiveness of an internal control.

Question

Quizplus · Accepted Answer

Auditing a larger sample size increases the precision of the estimate of the population, which helps to reduce the margin of error and increase the reliability of the conclusion. Therefore, auditing a larger sample size can reduce the probability of reaching a wrong conclusion about the effectiveness of an internal control.

Auditing a Larger Sample Reduces the Probability of Reaching a Wrong