An example of a qualitative factor auditors will consider when determining sample size is _______.
A)the accounts receivable turnover ratio
B)the days in receivables ratio
C)the percentage of bad debt expense
D)significant turnover in the accounts receivable department

Question

Quizplus · Accepted Answer

Significant turnover in the accounts receivable department could result in increased risk of errors or fraud, which would be a qualitative factor that would increase the necessary sample size for auditing. The other choices are quantitative factors that would not necessarily affect the necessary sample size.

An Example of a Qualitative Factor Auditors Will Consider When