MUS TBS work (sample size) 🫠 🐟

If item increase what happens to sample size?

Expected divation rate (assess

Increases (more aticipated errors, you need to test more)

Tolerble devation rate (accept)

decrease (more devations, not as much presision

risk of over reliance (accept

Decrease( higher risk neededing less precision

expected mistatment (assess

increase (more misstatments, larger sample size to detect)

tolorable misstatments (accept

decreases (tolarate a larger msitamtent, dont need presions

Risk of incorrect acceptace (accept

decrease (confortable with less pressision )

Detection risk (accept)

decrease (confort with less assurance for testing)

Control risk (assess

increse ( if assess as weak, cr higher, then audit can not rely and larger sample needed

Inharent risk ( asses

increases (aduit expecting more potentioal misstatment

Audit risk (accept)

decreases (confrotable with less assurance)

Engagemtn risk (assess

increase (audit is causious and needs more procedures, larger sample size)

Business risk (liquid/profit) (assess

increase (when business is high, more unceritanty and potential exposure)

Assess

BIG is BAD

Accept

small is conservitive