Which of the following factors does an auditor need to consider in planning a particular audit sample for a test of control?
A)Estimated standard deviation.
B)Total dollar amount of the items to be sampled.
C)Acceptable level of risk of assessing control risk too low.
D)Tolerable misstatement.

Question

Quizplus · Accepted Answer

The acceptable level of risk of assessing control risk too low is a key factor that an auditor needs to consider in planning a particular audit sample for a test of control. This risk indicates the auditor's willingness to accept the possibility of the control being ineffective, and it determines the level of testing required to reduce the risk to an acceptable level. The other factors listed, such as estimated standard deviation, total dollar amount of the items to be sampled, and tolerable misstatement, are more relevant to substantive testing than to testing of controls.

Which of the Following Factors Does an Auditor Need to Consider