The sample size can be determined once the auditor specifies
A)the tolerable rate of exceptions
B)the expected rate of exceptions
C)the desired level of assurance
D)the actual rate of deviation
E)the tolerable rate of deviation
F)both A and B
G)both C and E
H)both D and E

Question

Quizplus · Accepted Answer

The sample size depends on the desired level of assurance, which specifies the amount of risk the auditor is willing to take. This is closely related to the tolerable rate of deviation, which is the maximum rate of deviation the auditor is willing to accept before concluding that the control is not effective. The expected rate of exceptions is also important, as it helps to determine the level of risk associated with the control and the amount of evidence needed to provide reasonable assurance that it is operating effectively. Therefore, both C and E are relevant in determining the appropriate sample size. A and B are related to the auditor's evaluation of the control's effectiveness, while D is not relevant to determining the sample size.

The Sample Size Can Be Determined Once the Auditor Specifies