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Which of the following would lead to a larger sample size all other things being equal? A number of factors influence the sample size for a substantive test of details of an account balance. 



A. Greater reliance on internal control
B. Greater reliance on analytical procedures
C. Smaller expected frequency of errors
D. Smaller measure of tolerable misstatement

This question is part of Auditing - Final - Multiple Choice
Asked by Dodonutt, Last updated: Jan 12, 2020

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2 Answers

M. Parker

M. Parker, Internet Researcher, Houston

Answered Feb 01, 2019

D is the answer to this question. Do you know that the margin of error can be lessened when you increase your sample size? Just remember that you need to take note of the different factors that may affect your study. The alpha and the beta are going to be extremely important. The alpha refers to the level of probability that can be accepted as true that is not due to chance. Beta, on the other hand, refers to the possibility of detecting a potential change if there is going to be chan...Read More
 

John Smith

John Smith

Answered Oct 06, 2016

Smaller measure of tolerable misstatement

LO #17-1, #17-2
 

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