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If auditor places greater reliance on operative effectiveness of controls ..then sample size should be increased...how?
Answers (7)
As the auditor is placing greater reliance on operative effectiveness of controls, he should be highly satisfied that the controls are working properly. So the sample size will increase as he will want to check more details regarding the operating effectiveness of the controls.
CA Suraj Lakhotia Admin
Here you are testing controls. So put greater reliance, you need to have a larger sample.
Does the sentence want to say the desired level of reliance auditor wants to put. Because if he already places greater reliance then why should the sample size increase
Thread Starter
Gauri SheteDoes the sentence want to say the desired level of reliance auditor wants to put. Because if he already places greater reliance then why should the sample size increase
Before placing greater reliance he should check whether the controls are reliable. So to test the controls he will increase the sample size
Neha Baliga
Before placing greater reliance he should check whether the controls are reliable. So to test the controls he will increase the sample size
Ok all in all ...it itvthe desired reliance as you said before placing reliance
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