To determine the appropriate sample size for an attributes sampling application,Williams,CPA,defined the population to be 25,000 sales invoices.Williams then assessed the risk of overreliance to be 10%,the tolerable rate of deviation to be 4%,and the expected population deviation rate to be 2.5%.Using the AICPA Sample Size tables,the appropriate sample size would be:
A)9
B)13
C)353
D)513

Question

Quizplus · Accepted Answer

The sample size is determined using the AICPA Sample Size tables based on the assessed risk of overreliance, the tolerable rate of deviation, and the expected population deviation rate. Given the parameters (10% risk of overreliance, 4% tolerable rate, and 2.5% expected deviation rate), the table indicates a sample size of 353.

To Determine the Appropriate Sample Size for an Attributes Sampling