[Anonymous]

On Wiley book, a chart show Variable Sampling Summary of Relationships to Sample Size:

Increase in Effect on Sampling Size

Risk- Incorrect Acceptance Decrease

Risk -Incorrect Rejection Decrease

How could both lead to decrease in sample size? I would expect increase in risk of incorrect rejection lead to increase in sample size. Could anybody explain?

Question 2 from Wiley test bank:

Auditor requires a smaller sample size if the desired sample size increase or decrease?

Answer is Increase.

Could anybody explain? I found it to be very confusing….

[Anonymous]

Increase in

Risk- Incorrect Acceptance Decrease , leads to increase in sample size

Risk -Incorrect Rejection Decrease, leads to increase in sample size

[Gerg, CPA]

both are basically the risk that your sample is not indicative of the population.

Look at it this way, if your sample size is larger, then you are doing more testing & you can better rely on your sample – therefore both risks will decrease

I think that's right?

FAR - 1/26/2012 - PASSED (78, but Lost credit), re-do 11/27/2013 - PASSED (87)!
AUD - EPIC FAIL, 71, 69; 68; 5/25/2013 - PASSED (85)!
REG - 10/1/2012 - 72; 7/1/2013 - 73 UGH, 10/1/2013 - PASSED (85)!
BEC - 2/28/2013 - PASSED (82)!
Licensed CPA!

Used Becker self-study materials (just this for FAR original & REG #1), WileyTestBank, NINJA notes/audio, and Roger cram course for AUD #5, REG #3 & FAR reboot. CPA!

[Anonymous]

@gsnyder00, your answer is almost convincing except for this phrase “I think that's right?”

What do you really think?

It took me a while before I understood Audit sampling, but not all of its concepts. Most of the questions/items are too wordy, so this subject still tortures my brain up to this point. Like the words “acceptable” level of risk against “assessed” level of risk; INCREASE in the risk of acceptance DECREASE, really?

I find Jeff's audio a great help in understanding most of the concepts though.

[Gerg, CPA]

@amordiva, i only include that caveat, because this is not my 1st time around the block w/ AUD.

FAR - 1/26/2012 - PASSED (78, but Lost credit), re-do 11/27/2013 - PASSED (87)!
AUD - EPIC FAIL, 71, 69; 68; 5/25/2013 - PASSED (85)!
REG - 10/1/2012 - 72; 7/1/2013 - 73 UGH, 10/1/2013 - PASSED (85)!
BEC - 2/28/2013 - PASSED (82)!
Licensed CPA!

Used Becker self-study materials (just this for FAR original & REG #1), WileyTestBank, NINJA notes/audio, and Roger cram course for AUD #5, REG #3 & FAR reboot. CPA!

[Author]

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