Which of the Following Would Not Result in a Lower

question 13

Multiple Choice

Which of the following would not result in a lower level of the risk of incorrect acceptance?

• A) An increase in the acceptable level of audit risk from 5% to 10%
• B) The inability of the auditor to rely on the internal control as planned
• C) An increase in the susceptibility of the account balance to misstatement
• D) A reduction in the utilization of analytical procedures in the audit examination

---

Definitions:

Finite Population Correction

An adjustment made to sampling formulas to account for the fact that the sample is drawn from a finite population, often resulting in smaller standard errors.

Standard Error

An estimate of the standard deviation of the sampling distribution of a statistic, typically used to measure the accuracy of a sample mean.

Normal Distribution

A probability distribution that is symmetrical around the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Degrees of Freedom

The number of independent values or quantities that can vary in the analysis of statistical data, crucial for assessing the reliability of various statistics.