Sampling Flashcards
1
Q
Statistical advantage over non-statistical
A
- measure sufficiency of evidence
- objectively measure quantitative
2
Q
Fraud risk
A
Increase when:
- single vendor
- copy not original
3
Q
Non-sampling risk
A
- fail to recognize misstatement
- misinterpret audit evidence
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)
5
Q
sample size determination factor
A
- expected deviation rate
- allowable risk of assessing risk too low
- tolerable deviation rate
6
Q
Allowance for sample risk=
A
= upper precision limit - sample error rate
7
Q
PPS
A
to address risk of incorrect acceptance (overstatement error)