In a probability-proportional-to-size sample,increasing the tolerable misstatement has what effect on sample size,when all other factors are held constant?
A)Increases.
B)Decreases.
C)No effect.
D)Indeterminate.

Question

Quizplus · Accepted Answer

Increasing the tolerable misstatement decreases the sample size because a higher tolerable misstatement means that the auditor is willing to accept a larger error, thus requiring a smaller sample to achieve the same level of assurance.

In a Probability-Proportional-To-Size Sample,increasing the Tolerable Misstatement Has What Effect