A number of factors can affect the size of a sample for a substantive audit of the details of an account balance.All other factors being equal,which of the following would lead to a larger sample size?
A)A lower assessed level of control risk.
B)Using a larger number of effective analytical procedures to obtain evidence about particular assertions.
C)Smaller expected frequency of account item errors.
D)Smaller measure of tolerable misstatement.

Question

Quizplus · Accepted Answer

Smaller measure of tolerable misstatement means that the auditor expects less misstatement in the account balance, which leads to a lower allowable deviation rate.This, in turn, leads to a larger sample size being necessary to achieve the appropriate level of assurance.

A Number of Factors Can Affect the Size of a Sample