Final answer:
Significant turnover in the accounts receivable department is a qualitative factor auditors consider when determining sample size because it relates to non-numerical aspects like internal controls and staff competence which can affect audit outcomes. option 4.
Step-by-step explanation:
An example of a qualitative factor auditors will consider when determining sample size is significant turnover in the accounts receivable department. Unlike quantitative measures such as the accounts receivable turnover ratio, days in receivables ratio, or the percentage of bad debt expense, which involve numerical data, a qualitative factor refers to non-numerical aspects that may affect the outcome of an audit.
Qualitative factors, such as a high rate of employee turnover, might indicate potential issues with internal controls, staff competence, or possibly fraud. These factors play a significant role in an auditor's assessment of risk and, therefore, in determining the appropriate sample size for an audit examination.