An auditor is determining the appropriate sample size for a variables sampling application.Compared to prior engagements,the auditor concludes that the population variability has increased.In addition,the partner on the engagement is requiring lower levels of the risk of incorrect acceptance than those used in previous audits.What effect will these changes have on the auditor's determination of sample size?
A)Both of these changes will decrease sample size.
B)The increase in population variability will increase sample size; reducing sampling risk will have no effect on sample size.
C)The increase in population variability will increase sample size; reducing sampling risk will decrease sample size.
D)Both of these changes will increase sample size.

Question

Quizplus · Accepted Answer

The increase in population variability will lead to increased sample size as more samples are needed to obtain a representative sample. Additionally, reducing the risk of incorrect acceptance will require a larger sample size to ensure a higher level of confidence in the results. Therefore, both changes will increase the auditor's determination of sample size.

An Auditor Is Determining the Appropriate Sample Size for a Variables