@Mystro in reference to “Why does a higher specific risk of incorrect acceptance DECREASE sample size?
From my understanding the incorrect acceptance is the risk that the auditor will not figure out the risk &
by inherent risk the auditor will assess internal control too low, which means decreases sample size by auditor mistake.”
I think you have these concepts mixed up. There are risks that the auditor assessed the risk too high/low. If it is too low then there is incorrect acceptance which means the test is not effective; the population had material misstatement and your sample didn't catch it. When the risk is assessed too high then the auditor must perform testing at a higher and unnecessary level because of the perceived risk of material misstatement which leads the test to inefficient.
Inherent risk relates to the susceptibility of a relevant assertion to a material misstatement when there is no related controls, while control risk relates to the risk that the controls will fail to detect/ prevent misstatements. (If I am wrong someone please correct me)
From what I read, you mixed all four risks together.
I am not sure that I completely understand the language in the question you wanted clarified, but I do know that the more risk you are willing to accept the smaller your sample can be. I cannot give you a definitive answer because I am not sure what question you are referencing.
-Marie
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