All things being equal, as the risk of assessing control risk too low __________; sample size __________:
A) increases; decreases.
B) increases; increases.
C) decreases; decreases.
D) None of the above.

Question

Quizplus · Accepted Answer

When the risk of assessing control risk too low increases, it means that the auditor believes that controls are more effective than they actually are, leading to a higher chance of not detecting material misstatements. To compensate for this, the auditor should increase the sample size to increase the likelihood of detecting any potential errors or fraud. Therefore, as the risk of assessing control risk too low increases, the sample size should also increase.

All Things Being Equal, as the Risk of Assessing Control