Question

In nonstatistical sampling for tests of controls, increasing the desired confidence level results in a __________.

1) higher tolerable deviation rate.
2) lower expected deviation rate.
3) larger sample size.
4) smaller sample size.

Answer 1

Increasing the desired confidence level in nonstatistical sampling for tests of controls results in a larger sample size.

Step-by-step explanation:

In nonstatistical sampling for tests of controls, increasing the desired confidence level results in a larger sample size. This is because a higher confidence level means that the auditor desires a higher certainty that the control is functioning effectively, which necessitates a greater amount of evidence to be collected through the sample. The relationship between confidence level and sample size is straightforward: as you want to be more confident about your results, you need more evidence to support your conclusion, hence, a larger sample size is required to maintain the desired level of confidence.