The Audit Team Is Planning to Examine a Sample of Control

Multiple Choice

The audit team is planning to examine a sample of control policies and procedures.Assume that,based on the intended degree of reliance on internal control,the audit team wishes to control the risk of overreliance to 5%.In addition,based on prior engagements,the audit team anticipates an expected deviation rate of 2%.What would be the impact of reducing the tolerable rate of deviation from 7% to 5% on the sample size?

A) Increase sample size by 181 items.
B) Decrease sample size by 181 items.
C) Increase sample size by 93 items.
D) Decrease sample size by 93 items.