In Mean per Unit (MPU) estimation, the sample size required to achieve specified statistical objectives _______.
A)is related directly to the variability of the values of the population items
B)is not related to the variability of the values of the population items
C)should be determined by specialists employed by the auditors
D)should be determined by senior management and communicated to the auditor

Question

Quizplus · Accepted Answer

The sample size required in MPU estimation is directly related to the variability of the values of the population items. A more variable population will require a larger sample size to achieve the same level of precision as a less variable population. The determination of the appropriate sample size should be based on statistical considerations, and not the opinions or preferences of specialists or senior management.

In Mean Per Unit (MPU) Estimation, the Sample Size Required