An Auditor Is Determining the Appropriate Sample Size for a Variables

question 29

Multiple Choice

An auditor is determining the appropriate sample size for a variables sampling application.Compared to prior engagements,the auditor concludes that the population variability has increased.In addition,the partner on the engagement is requiring lower levels of the risk of incorrect acceptance than those used in previous audits.What effect will these changes have on the auditor's determination of sample size?

• A)Both of these changes will decrease sample size.
• B)The increase in population variability will increase sample size; reducing sampling risk will have no effect on sample size.
• C)The increase in population variability will increase sample size; reducing sampling risk will decrease sample size.
• D)Both of these changes will increase sample size.

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Definitions:

Theories of Organizational Behaviour

A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, aiming to apply such knowledge towards improving an organization's effectiveness.

Cultural Missteps

Actions or behaviors that are inappropriate or offensive within a cultural context, often due to a lack of understanding or awareness of that culture.

Tight Cultures

Societies or groups characterized by strict norms, rules, and a little tolerance for deviant behavior.

Loose Cultures

Social or organizational cultures characterized by a tolerance for deviance from norms and a flexibility in behavior and beliefs.