Exam CISA topic 1 question 1055 discussion

A. Lower confidence coefficient

lower confidence coefficient

Low confidence coefficient → Small sample size acceptable High expected error rate → Large sample size required Thus, a small sample size may be justified only when the confidence coefficient is low.

when the expected error rate is high, the auditor can be more confident in finding those errors even with a smaller sample So, the right answer will be B

Answer: B Higher expected error rate: The expected error rate refers to the auditor's estimation of the percentage of errors in the population being sampled. If the auditor expects a higher error rate, there is a greater likelihood of detecting errors in the population with a smaller sample size. Therefore, using a smaller sample size may be justified when a higher error rate is anticipated.

An IS auditor may be justified in using a SMALLER sample size under the circumstance of a higher expected error rate. When the auditor anticipates a higher likelihood of errors in the population, a smaller sample size may be sufficient to detect and assess the extent of those errors. Conversely, when the expected error rate is lower, a larger sample size is typically needed to provide a higher level of confidence in the results.

D. Lower precision amount A smaller sample size can be used when the auditor is willing to accept lower precision or a larger margin of error in the results. This means that the auditor is willing to tolerate a greater degree of uncertainty in the sample findings.