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Consider Whether Sampling Risk Is Reduced To An Acceptably Low Level
Consider Whether Sampling Risk Is Reduced To An Acceptably Low Level
6 level.
Sample size
Risk of the
Auditor is Sample size
can be
willing to needed
determined
accept.
through:
Exercise of
Statistically
professional
based formula
judgement
Factors Influencing Compliance
Test Sample Size
Conditions Leading to
FACTORS Smaller Sample Size Larger Sample Size
1. Planned reliance on internal Lower Higher
control
2. Allowable rate of deviation Higher Lower
(tolerable error)
3. Likely rate of population Lower Higher
deviation
4. Required confidence level Decrease Increase
Low 2%- 7%
Moderate 6% -12%