A number of factors influence the sample size for a variables sampling application.All other factors held constant,which of the following would lead to a larger sample size?
A)A lower assessed level of risk of material misstatement.
B)Increased use of analytical procedures to obtain evidence about particular assertions.
C)Lower frequency and magnitude of misstatements.
D)Lower levels of tolerable misstatement.

Question

Quizplus · Accepted Answer

Lower levels of tolerable misstatement mean that the auditor is allowing less room for error in the financial statements. This would lead to a larger sample size as the auditor would need to gather more evidence to have a higher level of confidence in the accuracy of the financial statements.

A Number of Factors Influence the Sample Size for a Variables