If all other factors specified in an attributes sampling plan remain constant,decreasing the tolerable rate and increasing the estimated population deviation rate would have what effect on sample size?
A)Increase.
B)Remain the same.
C)Decrease.
D)Indeterminate,depends upon exact change being made.

Question

Quizplus · Accepted Answer

Decreasing the tolerable rate means that the auditor is willing to accept a lower level of deviation, which requires a larger sample to obtain the same level of precision. Increasing the estimated population deviation rate means that there is a higher risk of deviation in the population, which also requires a larger sample to achieve the desired level of precision. Therefore, decreasing the tolerable rate and increasing the estimated population deviation rate both increase the required sample size.

If All Other Factors Specified in an Attributes Sampling Plan