When testing the accuracy of transaction data, which of the following situations BEST justifies the use of a smaller sample size?
When testing the accuracy of transaction data, which of the following situations BEST justifies the use of a smaller sample size?
A lower expected error rate reduces the required sample size because the auditor assumes fewer errors exist in the population. If the population is anticipated to be error-free (expected error rate ≈ 0%), statistical sampling principles permit a smaller sample to confirm this assumption. Also ISACA’s audit sampling guidelines 'G10 Audit Sampling' explicitly state: "Smaller sample sizes are justified when the population is expected to be error-free"