Sampling - Attributes

Question 1

Type I Error

Answer 1

False Positive
Decision is that tests shows ineffective measures, but actually they are effective. False rejection - related to efficiency.

Question 2

Type II Error

Answer 2

False Negative
Decision is that tests show effective measures, when are actually ineffective. Audit Risk - false acceptance - related to effectiveness

Question 3

Factors Affecting Sample Size:

Risk of over-reliance (type II)

Answer 3

Inverse

Question 4

Factors Affecting Sample Size:

Expected error rate (variability of pop)

Answer 4

Direct

Question 5

Factors Affecting Sample Size:

Tolerable Error Rate (precision)

Answer 5

Inverse

Question 6

Factors Affecting Sample Size:

Risk of under reliance (type I - Implicit)

Answer 6

Inverse

Question 7

Factors Affecting Sample Size:
Population size (implicit)

Answer 7

Direct

Question 8

What are the 5 factors that affect Sample Size?

Answer 8

Risk of over-reliance Type II - false accept
Expected Error Rate
Tolerable Error Rate
Risk of under-reliance Type I - False reject
Population Size

Question 9

Factors to consider

Answer 9

1) Risk of over-reliance - type II error - aka assessing control risk too low - false accept
2) Expected deviation rate - related to variability
3) Tolerable deviation rate - precision