A Number of Factors Can Affect the Size of a Sample

question 8

Multiple Choice

A number of factors can affect the size of a sample for a substantive audit of the details of an account balance.All other factors being equal,which of the following would lead to a larger sample size?

• A)A lower assessed level of control risk.
• B)Using a larger number of effective analytical procedures to obtain evidence about particular assertions.
• C)Smaller expected frequency of account item errors.
• D)Smaller measure of tolerable misstatement.

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Definitions:

Geographic Location

The specific physical position of something on the Earth's surface, determined by its latitude, longitude, and other factors.

Matrix Structure

An organizational structure that combines two or more types of organizational structures, most commonly functional and product-based divisions, aiming for greater flexibility in management.

Transnational Company

A multinational corporation that operates in multiple countries but adjusts its practices and products to local conditions.

Functional Structure

An organizational design that groups employees according to their specialized roles or functions within the company, aiming for operational efficiency.