Which of the following factors decreases sample size in tests of controls?
A) an increase in the expected deviation rate in the population
B) an increase in the extent to which an auditor's risk assessment takes into account internal controls
C) an increase in the number of sampling units in the population
D) an increase in the tolerable deviation rate

Question

Quizplus · Accepted Answer

A higher tolerable deviation rate means the auditor is willing to accept a higher level of error, which means less precision is needed and thus a smaller sample size is required.

Which of the Following Factors Decreases Sample Size in Tests