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Sample sizes for tests of control are influenced by sampling risks. True or false?

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Question added by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER
Date Posted: 2017/01/17
Amer Bakodah
by Amer Bakodah , External Audit Intern , Grant Thornton

Audit Risk= Inherent risks x Control Risk x Detection Risk

 

Detection risk is further divided into sampling and non sampling risk

Detection risk lies with the auditor and an auditor performs tests on the basis of samples

However, sample sizes may be increased if there is increased risk of material misstatements

The answer is true

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