When testing controls,a decrease in the sample size will occur when there is:
A)a decrease in the tolerable rate of deviation
B)an increase in the extent to which the auditor's risk assessment takes into account relevant controls
C)an increase in the tolerable rate of deviation
D)an increase in the number of sampling units in the population

Question

Quizplus · Accepted Answer

An increase in the tolerable rate of deviation means the auditor is willing to accept a higher level of deviation before concluding that the control is not effective. This higher tolerance allows for a smaller sample size to be used in testing.

When Testing Controls,a Decrease in the Sample Size Will Occur