When using a statistical sampling plan,the auditors would probably require a smaller sample if the:
A)Population increases.
B)Tolerable misstatement decreases.
C)Desired risk of incorrect acceptance increases.
D)Expected deviation rate increases.

Question

Quizplus · Accepted Answer

The desired risk of incorrect acceptance refers to the risk that the auditors are willing to take in accepting a financial statement assertion as true when it is actually false. When auditors are willing to accept a higher risk of incorrect acceptance, they are essentially saying they are more comfortable with the possibility of not detecting a misstatement. This increased comfort level allows them to justify using a smaller sample size, as they are less concerned about catching every potential error.

When Using a Statistical Sampling Plan,the Auditors Would Probably Require