A lack of experienced employees in the revenue and receipts cycle at an audit client has led you to expect an increase in the rate of deviation for the tests of controls you are about to conduct on the cycle. Which one of the following represents the effect this likely would have on the size of the sample you are about to extract?

Question

Accepted Answer

An increase in the sample size.

Answer

No change in the sample size as an increase deviation rate is not a risk.

Answer

A decrease in the sample size.

Answer

No change to the sample size as you have no evidence of the lack of experience of the employees.

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A lack of experienced employees in the revenue and receipts cycle at an audit cl...

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