Question

A number of factors influence the sample size for a substantive test of details of an account balance. All other factors being equal, which of the following would lead to a larger sample size?
a. Greater reliance on internal control
b. Greater reliance on substantive analytical procedures
c. Smaller expected frequency of errors
d. Smaller measure of tolerable misstatement

Answer 1

Answer: D. Smaller measure of tolerable misstatement.

Explanation:

The sample size simply means the number of participants that are included in a study. They're the group of subjects which are picked and selected from the population and represents the general population for that study.

From the options given, it should be noted that a smaller measure of tolerable misstatement will lead to a larger sample size.