The Auditors Have Audited a Sample with a Standard Deviation

question 39

Multiple Choice

The auditors have audited a sample with a standard deviation of audited values larger than they had originally estimated. In this situation, to maintain the risk of incorrect acceptance at its predetermined level without increasing the size of the sample, which of the following statements is correct?

• A) The adjusted allowance for sampling risk will be smaller than had been planned.
• B) The adjusted allowance for sampling risk will be larger than had been planned.
• C) The risk of incorrect rejection will necessarily decrease.
• D) The size of the population must be decreased.

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