Sampling Flashcards

1
Q

Statistical advantage over non-statistical

A
  • measure sufficiency of evidence

- objectively measure quantitative

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Fraud risk

A

Increase when:

  • single vendor
  • copy not original
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Non-sampling risk

A
  • fail to recognize misstatement

- misinterpret audit evidence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Attribute sampling

A
  • relates to testing control
  • allows quantifying sampling risk
  • compare tolerable rate with upper precision limit (increase if upper limit exceeds tolerable)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

sample size determination factor

A
  • expected deviation rate
  • allowable risk of assessing risk too low
  • tolerable deviation rate
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Allowance for sample risk=

A

= upper precision limit - sample error rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

PPS

A

to address risk of incorrect acceptance (overstatement error)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly