Got another one, trying to tie up some loose ends!
An auditor may decide to decrease the acceptable level of risk when:
A. The cost and effort of selecting additional sample items is low — CORRECT
B. Many difference (audit value minus recorded value) are expected
C. Initial sample results do no support the planned level of control risk
D. Increased reliability from the sample is desired
I chose D, however I can see why A was the correct answer. However, their explanation on why D is incorrect has me confused.
Becker's explanation: “Decreasing the acceptable level of risk doesn't increase the reliability of a given sample. It does, however, result in selection of a larger sample which in turn makes it less likely that the auditor will make an incorrect decision” — isn't that a half a** way of saying that its more reliable! lol?
FAR - 78
REG - 72,74,71...please just go away REG nobody likes you!
BEC - 82
AUD - Aug 16