When sampling both expected amount of misstatements and measure of tolerable misstatements will affect sample size.

What impact will there be on sample size when there is an increase in the number of sampling units in the population?

An increase in the number of sampling units in the population Negligible effect For large populations, the actual size of the population has little, if any, effect on sample size.

What factors should be considered when determining the sample size for tests of details in this instance the accounts receivable balance?

16-12 The most important factors affecting the sample size in confirmations of accounts receivable are:  Tolerable misstatement  Inherent risk (relative size of total accounts receivable, number of accounts, prior year results, and expected misstatements)  Control risk  Achieved detection risk from other …

How would increased in tolerable misstatement and assessed level?

d. The sampling interval is calculated by dividing the number of physical units in the population by the sample size. How would increases in tolerable misstatement and assessed level of control risk affect the sample size in a substantive test of details? Increase in Tolerable Misstatement = Decrease sample size.

What factors impact sample size in the audit of substantive tests of account balances?

As the assessed levels of inherent risk, control risk, and detection risk for other substantive procedures directed toward the same specific audit objective decreases, the auditor’s allowable risk of incorrect acceptance for the substantive tests of details increases and, thus, the smaller the required sample size for …

How does sample size affect statistical significance?

Higher sample size allows the researcher to increase the significance level of the findings, since the confidence of the result are likely to increase with a higher sample size. This is to be expected because larger the sample size, the more accurately it is expected to mirror the behavior of the whole group.

What is a good sample size for a study?

A good maximum sample size is usually 10% as long as it does not exceed 1000. A good maximum sample size is usually around 10% of the population, as long as this does not exceed 1000. For example, in a population of 5000, 10% would be 500. In a population of 200,000, 10% would be 20,000.

Is high detection risk good?

Detection risk results in the auditor’s conclusion that no material errors are present where in fact there are. Detection Risk and quality of audit have an inverse relationship: if detection risk is high, lower the quality of audit and if detection risk is low, generally increase the quality of audit.