Day: June 2, 2026

When determining a sample size for tests of details, an auditor should consider several factors.

For the factor below, select whether it would cause the sample size to increase, to decrease, have a negligible effect, or it depends.

• The assessed risk of a material misstatement in respect of a balance has been reappraised and has increased.

Select ONE answer:

1. Decrease
2. Has a negligible effect
3. Increase
4. It depends

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – When the assessed risk of material misstatement for a balance is increased, the sample size increases (ie, more work is needed for higher risk balances).
4. Not correct

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