A Number of Factors Influence the Sample Size for a Substantive

question 7

Multiple Choice

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

• A)Greater reliance on internal controls.
• B)Greater reliance on analytical procedures.
• C)Smaller expected frequency of misstatements.
• D)Smaller measure of tolerable misstatements.

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Definitions:

Legal Processes

Formal procedures and practices followed in the administration of justice, including litigation and judicial decisions.

Financing Statement

A document filed to give public notice to third parties of a security interest in personal property.

Legal Terminology

Specialized language used in the field of law, encompassing terms, phrases, and principles pertinent to legal proceedings and documentation.

Real Property

Refers to land and anything permanently attached to it, such as buildings and structures, legally considered immovable.