Accounting Multiple Choice Question – 26 June 2026

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

For the factor described below, select whether it would cause the sample size to increase, decrease, have no impact, or depend on the size of the business.

• An increase in the auditor’s assessment of the risk of material misstatement

Select ONE answer:

1. There is no impact
2. It depends on the size of the business
3. Increase
4. Decrease

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

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 3

1. Not correct
2. Not correct
3. Correct – An increase in the auditor’s assessment of the risk of material misstatement would cause the sample size to increase as an increase in audit risk can only be addressed and reduced by an increase in the work carried out.
4. Not correct

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