Which of the Following Statements Best Describes a Relationship Between

question 1

Multiple Choice

Which of the following statements best describes a relationship between sample size and other elements of auditing?

• A)If materiality increases, so will the sample size.
• B)If the desired level of assurance increases, sample sizes can be smaller.
• C)If materiality decreases, sample size will need to increase.
• D)There is no relationship between sample size and materiality or the desired level of assurance.

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Definitions:

R&D Spending

Funds allocated by businesses, organizations, or governments towards research and development in order to innovate and improve products or services.

Development (Innovation and Imitation)

The process in which economies grow or change over time through the introduction of new technologies (innovation) and the adoption of successful technologies or methods from others (imitation).

Technological Advance

Refers to the development and application of innovative techniques, equipment, and processes that improve productivity, efficiency, and outcomes in various fields.