When selecting a sample size for substantive tests of balances which factor, other factors being equal, would result in a larger sample?
A) smaller tolerable misstatement
B) small expected misstatements
C) greater tolerable misstatement
D) greater expected misstatement

Question

Quizplus · Accepted Answer

A smaller tolerable misstatement means that the auditor is willing to accept less misstatement in the financial statements, which would result in a more stringent substantive testing approach and a larger sample size.

When Selecting a Sample Size for Substantive Tests of Balances