An auditor is determining the sample size for an inventory observation using mean-per-unit estimation, which is a variables sampling plan. To calculate the required sample size, the auditor usually determines the:

Question

Quizplus · Accepted Answer

Choice "A" is correct. The sample size in a variables sampling application is affected by the variability in the population (generally represented by the standard deviation), the acceptable level of risk (i.e., the risk of incorrect acceptance), the tolerable misstatement, and the expected misstatement. Choices "B", "C", and "D" are incorrect, per the above Explanation.

An Auditor Is Determining the Sample Size for an Inventory