As the amount of misstatements expected in the population approaches tolerable misstatement, the planned sample size will
A) decrease.
B) increase.
C) vary based on characteristics of the population.
D) be unaffected.

Question

Quizplus · Accepted Answer

As the amount of misstatements expected in the population approaches the tolerable misstatement, auditors perceive a higher risk of material misstatement. To mitigate this risk and gain more assurance, they will plan for a larger sample size to perform a more thorough examination.

As the Amount of Misstatements Expected in the Population Approaches