As the Auditors' Assessments of Control Risk and Analytical Procedures

question 30

Multiple Choice

As the auditors' assessments of control risk and analytical procedures risk decrease,which of the following statements is true?

• A)The sample size will not be affected.
• B)The allowable risk of incorrect acceptance will increase.
• C)The sample size will increase.
• D)The allowable risk of incorrect acceptance will decrease.

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Definitions:

Input

Resources, materials, or data entered into a system for processing or production.

Production Function

A mathematical representation of the relationship between inputs (such as labor and capital) and the maximum amount of output that can be produced from those inputs.

Factors Of Production

The inputs or resources that are used in the production of goods and services, traditionally categorized as land, labor, capital, and entrepreneurship.

Input

The resources, materials, or data put into a system, process, or machine to obtain a desired output.