Chapter 8 Flashcards
(16 cards)
the uncertainty that results from sampling, the difference between the expected mean of the population and the tolerable deviation or misstatement.
allowance for sampling risk
sampling used to estimate the proportion of a population that possesses a specified characteristic
attribute sampling
the selection and evaluation of less than 100% of the population of audit relevance such that the auditor expects the items selected to be representative of the population
audit sampling
the use of normal distribution theory to estimate the dollar amount of misstatement for a class of transactions or an account balance
classical variables sampling
the probability that the true but unknown measure of the characteristic of interest is within specified limits
desired confidence level
the deviation rate that the auditor expects to exists in the population
expected population deviation rate
attribute-sampling techniques used to estimate the dollar amount of misstatement for a class of transactions or an account balance
monetary-unit sampling
the risk that the auditor reaches an erroneous conclusion for any reason not related to sampling risk.
non-sampling risk
audit sampling that relies on the auditor’s judgement to determine sample size
non-statistical sampling
the evaluation of the sample will result in conclusions that are similar to those that would be drawn if the same procedures were applied to the entire population
representative sample
the risk that the sample supports the conclusion that the control is operating effectively when it is not or that the recorded account balance is not materially misstated when it is materially misstated.
risk of incorrect acceptance
the risk that the sample supports the conclusion that the control is not operating effectively when it actually is or that the recorded account balance is materially misstated when it is not materially misstated.
risk of incorrect rejection
the possibility that the sample drawn is not representative of the population and that,as a result, the auditor reaches an incorrect conclusion about the reliability of the control, the account balance, or class of transactions based on the sample
sampling risk
the individual items constituting a population being sampled
sampling unit
sampling that uses the laws of probability to select and evaluate the results of an audit sample, thereby permitting the auditor to quantify the sampling risk for the purpose of reaching a conclusion about the population
statistical sampling
the max deviation rate from a prescribed control that the auditor is willing to accept without altering the planned assessed level of control
tolerable deviation rate
