When Testing Controls, a Decrease in the Sample Size Will

question 18

Multiple Choice

When testing controls, a decrease in the sample size will occur when there is

• A) an increase in the tolerable rate of deviation.
• B) a decrease in the tolerable rate of deviation.
• C) an increase in the extent to which the auditor's risk assessment takes into account relevant controls.
• D) an increase in the number of sampling units in the population.

---

Definitions:

Profit

The financial gain obtained when revenues exceed the costs associated with business operations or investments.

Heart

That which is vital; the center or core of a person or thing. Expressing one’s innermost thoughts and feelings is termed “speaking from the heart,” and it is the basis of credibility and trust.

Emotional Intelligence

The capacity to be aware of, control, and express one's emotions, and to handle interpersonal relationships judiciously and empathetically.

Collaboration

Working together with one or more people to achieve a common goal, often involving sharing knowledge, learning, and building consensus.