The size of the upper limit on misstatement is largely dependent on the sample size, which is inversely related to the desired confidence level.

Question

Quizplus · Accepted Answer

The size of the upper limit on misstatement is largely dependent on the desired confidence level and the results of the audit procedures, not directly on the sample size. While sample size can affect the precision of the audit results, the relationship between sample size and the upper limit on misstatement is not inversely related to the desired confidence level.

The Size of the Upper Limit on Misstatement Is Largely