Question

Which of the following sample planning factors would influence the sample size for a substantive test of details for a specific account?
a. Expected amount of misstatements
b. Measure of tolerable misstatement

Answer 1

Answer:

Option "A" is correct. Expected amount of misstatements

Explanation:

Answer 2

Answer:

Both A and B

a. Expected amount of misstatements

b. Measure of tolerable misstatement

Explanation:

Substantiative test for results is an audit technique that is used to address.identified risk of material misstatements in financial statements. It is used to determine if balances and disclosures of a financial statement are accurate.

Types of substantiative tests include: examination, physical observation, recalculation, third party confirmation, inquiry, and reperformance.

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