EBK AUDITING & ASSURANCE SERVICES: A SY
EBK AUDITING & ASSURANCE SERVICES: A SY
11th Edition
ISBN: 9781260687668
Author: Jr
Publisher: MCGRAW-HILL LEARNING SOLN.(CC)
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Chapter 9, Problem 9.12MCQ
To determine

Concept Introduction:

Sampling is the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their audit procedures.

Sampling can be statistical or non statistical.

To choose: the case which will lead to a larger sample size.

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A number of factors influences the sample size for a substantive test of details of an account balance. All other factors being equal, which of the following would lead to a larger sample size? a. Smaller measure of tolerable misstatement. b. Greater reliance on internal control. c. Smaller expected frequency of errors. O d. Greater reliance on analytical procedures.
.What is the effect on sample size for substantive procedures of an increase in the total error that the auditor is willing to accept     increase decrease negligible effect no effect
Tolerable error, is the maximum monetary error that the auditor is prepared to accept in the population and still conclude that audit objective has been achieved, is directly related to A.Sample size BAudit risk C.Materiality D.Expected error
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