In which of the following cases would the auditor be more likely to conclude that all of the items in an account under consideration should be examined rather than tested on a sample basis?
B is corrent because a small tolerable misstatement combined with a high misstatement frequency increases the auditor’s required sample size which may lead to the conclusion by the auditor that all items of the account should be examined.
A is incorrect because one or both replies are incorrect.
C is incorrect because one reply is incorrect. D is incorrect because one reply is incorrect.
