In audit sampling, an advance estimate of the deviation rate is necessary to plan the appropriate sample size.The relationship of estimated population deviation rate (EPDR)to sample size is:
A) direct (small EPDR = small sample).
B) indeterminate.
C) inverse (small EPDR = large sample).
D) a variable (sometimes small, sometimes large) dependent on other factors present.

Question

Quizplus · Accepted Answer

A smaller estimated population deviation rate (EPDR) suggests that fewer deviations are expected, allowing for a smaller sample size to achieve the desired level of confidence and precision in the audit results.

In Audit Sampling, an Advance Estimate of the Deviation Rate