Audit Sampling Flashcards
1
Q
Nonsampling risk
A
Human error, misinterpreting audit test results, not recognizing misstatements in documents audited
2
Q
Sampling error
A
Bad sample, sample is not representative of the population; risk of drawing the wrong conclusion
3
Q
Type 1-efficiency error
A
Population is ok, but bad sample so don’t rely.
Under-rely on internal control
4
Q
Type 2-less effective
A
Population is bad but based on sample, the auditor believes everything is correct
Over-rely on internal control
