ICAEW ARF · Chapter 9 · Question 5 of 11
When testing controls, which of the following would increase the required sample size?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) An increase in the expected rate of deviation in the population
Explanation
The more deviations the auditor expects to find, the larger the sample needed to conclude that the actual rate does not exceed the tolerable rate. A higher tolerable rate or lower planned reliance reduces the sample size. For large populations, increasing the population size has little effect on sample size.
More Sampling and audit documentation MCQs
- Q7An auditor tests a sample of receivables balances with a total value of £50,000 from a population of £800,000. Misstatements found in the…
- Q8Which of the following is NOT a purpose of audit documentation?
- Q9Which of the following must be recorded on audit working papers documenting the testing of a sample of purchase invoices?
- Q10Who owns the audit working papers prepared during a statutory audit?
- Q11After the final audit file has been assembled, the auditor finds it necessary to add new documentation. Which of the following is permitted?
