What is the relationship between sample size and each of these factors?
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total answers (1)
total answers (1)
Accounting
- The nature of control - larger samples imply that the auditor should test manual controls because they are subject to less consistency, smaller sampling implies that the auditor is checking automated controls.
- Frequency of operations - larger samples imply that every transaction should be checked, smaller sampling implies that the operation of control happens less frequently.
- Tolerable deviation rate - larger samples imply that the smaller the rate of deviation from the prescribed control procedure, the larger the sample size, while the larger the rate of deviation, the smaller the sample size.
- Expected population deviation rate - larger samples imply that the closer tolerable deviation rate and expected deviation rate are to one another, the larger the sample size, the greater the amount between tolerable deviation rate and expected deviation rate, the smaller the sample size.
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