Ace the CIA Challenge 2025 – Unleash Your Inner Auditor Superpowers!

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What happens to sample size if the internal auditor increases the tolerable rate of deviation in attribute sampling?

It increases

It decreases

When the internal auditor increases the tolerable rate of deviation in attribute sampling, the sample size decreases. This is because the tolerable rate of deviation indicates the maximum rate of nonconformance that is acceptable during the review of attributes. If the auditor is willing to tolerate a higher rate of deviation, it implies that they are expecting a higher level of errors to be permissible in the population. Therefore, to maintain the same level of confidence in their results while allowing for a greater margin of error, the auditor can effectively reduce the number of samples needed for the audit.

The relationship is grounded in statistical principles; a higher tolerable deviation means that each individual sample's findings can be less precise, thus allowing for a smaller collection of samples overall while still achieving the desired assurance level.

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It remains unchanged

It is indeterminate

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