Audit Sampling

Question 1

Definition: Risk that the auditor is willing to take of accepting a control as effective when the true population exception rate is greater than the tolerable exception rate

Answer 1

Acceptable risk of overreliance

Question 2

Definition: An exception that arises from an isolated event that has not recurred other than on specifically identifiable occasions and is not representative of errors in the population

Answer 2

Anomaly

Question 3

Identification: Sampling risk in TOC where auditor assess control risk too high

Answer 3

Type 1 or Alpha Risk

Question 4

Identification: Other term for Alpha Risk in Sampling risk TOC

Answer 4

Risk of under reliance

Question 5

FITB: Alpha risk in sampling risk affects audit _

Answer 5

Efficiency

Question 6

Identification: Sampling risk in TOC where auditor assess control risk too low

Answer 6

Type 2 or Beta risk

Question 7

Identification: Other term for Beta Risk in Sampling risk TOC

Answer 7

Risk of over reliance

Question 8

FITB: Beta risk in sampling risk affects audit _

Answer 8

effectiveness

Question 9

Identification: Sampling risk in TDB where auditor concludes that material misstatement exists when it does not

Answer 9

Type 1 or Alpha risk

Question 10

Identification: Other term for Beta Risk in Sampling risk TDB

Answer 10

Risk of incorrect rejection

Question 11

Identification: Sampling risk in TDB where auditor concludes that material misstatement does not exists when it does

Answer 11

Type 2 or Beta risk

Question 12

Identification: Other term for Beta Risk in Sampling risk TDB

Answer 12

Risk of incorrect acceptance