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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.

All 11 questions in Chapter 9Sampling and audit documentation MCQs with answers

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