First, the above equation is clearly only for a theoretically ideal nozzle because the one factor absolutely mandatory in every real world application flow measurement nozzle equation is the nozzle coefficient (actual measured vs ideal) of each nozzle's particular design.
As to your original question, the smaller the second section diameter the higher the velocity in that section and greater the differential between the velocity in the two sections; therefore, the greater static pressure differential as well. The "a2/a1" factor in the equation varies correspondingly to normalize the measurement between the two flow velocity conditions.
With regard to relative accuracy, the effects on flow of a given nozzle design can affect the flow and pressure differential of that nozzle, for example, flow necking at the small diameter entrance, and as a result nozzle designs can not be scaled based strictly on a given configuration, the actual nozzle coefficient for each nozzle design must be established by flow testing in a calibrated flow testing system of that individual nozzle design, including its entry and small areas ratio.