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What is the Relationship between Acceptable risks of assessing control risk too low and sample size?
Wiki User
∙ 11y ago
Acceptable Risk of Assessing Control Risk too Low (ARACR) is inversely related to Sample Size.
Consider this: If we do not want to allow any room for error in judgment (meaning we lower the ARACR), we must increase the sample size to ensure our results have a smaller margin of error.
(Source: "Auditing and Assurance," 14th ed., Arens Elder Beasley, 491)
Wiki User
∙ 11y ago
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