In statistical sampling,setting the appropriate confidence level and desired sample precision are decisions made by the auditor that will affect sample size for a substantive procedure.Which of the following should not be a factor in the choice of desired precision?
A) The sampling risk.
B) The size of an account balance misstatement considered material.
C) The audit resources available for execution of the sampling plan.
D) The objectives of the audit test being conducted.

Question

Quizplus · Accepted Answer

The audit resources available for execution of the sampling plan should not be a factor in the choice of desired precision. The other three choices, sampling risk, size of an account balance misstatement considered material, and objectives of the audit test being conducted are all important factors in determining the desired precision.

In Statistical Sampling,setting the Appropriate Confidence Level and Desired Sample