An auditor is calculating the sample size for a test of controls using attribute sampling. Which of the following changes would result in a DECREASE in the required sample size?

Answer options:

An increase in the expected population deviation rate.

A decrease in the acceptable risk of assessing control risk too low.

An increase in the tolerable deviation rate.

An increase in the population size (for a large population).

How to approach this question

Understand the variables: Higher Confidence (Lower Risk) = More Sample. Higher Expected Error = More Sample. Higher Tolerable Error = Less Sample.

Full Answer

C.An increase in the tolerable deviation rate.✓ Correct

An increase in the tolerable deviation rate.

The tolerable deviation rate is inversely related to sample size. If the auditor is willing to accept a higher rate of deviation, a smaller sample size is sufficient to provide the required assurance.

Common mistakes

Confusing Expected Rate (Direct relationship) with Tolerable Rate (Inverse relationship).

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