Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
25 Cards in this Set
- Front
- Back
|
allowance for sampling risk
|
aka precision. an interval around the sample results in which the true population characteristic is expected to lie
|
|
|
attributes sampling
|
a sampling plan enabling the auditors to estimate the rate of deviation in a population
|
|
|
confidence level
|
in attributes sampling, the complement of the risk of assessing control risk too low. In variables sampling, the complement of the risk of incorrect acceptance
|
|
|
deviation rate
|
a defined rate of departure from prescribed controls.
|
|
|
difference estimation
|
a sampling plan that uses the difference between the audited values and book values of items in a sample to calculate the estimated total audited value of the population.
|
|
|
discovery sampling
|
a sampling plan for locating at least 1 deviation, providing that the deviation occurs in the population with a specified frequency
|
|
|
dual purpose test
|
a test designed to test a control and to substantiate the dollar amount of an account using the same sample
|
|
|
expected population deviation rate
|
an advance estimate of a deviation rate. this estimate is necessary for determining the required sample size in an attributes sample
|
|
|
nonsampling risk
|
the aspects of audit risk not due to sampling. this risk normally relates to human rather than statistical errors
|
|
|
Probability proportional to size sampling
|
a variables estimation procedure that uses attributes theory to express a conclusion in monetary amounts
|
|
|
projected misstatement
|
an estimate of the most likely amount of monetary misstatement in a population
|
|
|
ratio estimation
|
a sampling plan that uses the ratio of audited values to book values of items in the sample to calculate the estimated total audited value of the population.
|
|
|
reliability
|
the complement of the risk of incorrect acceptance
|
|
|
risk of assessing control risk too high
|
this risk is the possibility that the assessed level of control risk based on the sample is greater than the true operating effectiveness of the control
|
|
|
risk of assessing control risk too low
|
this moist important risk is the possibility that the assessed level of control risk based on the sample is less than the true operating effectiveness of the controls
|
|
|
risk of incorrect acceptance
|
the risk that sample results will indicate that a population is not materially misstated when, in fact it is materially misstated
|
|
|
risk of incorrect rejection
|
the risk that sample results will indicate that a population is materially misstated when, in fact it is not
|
|
|
sampling error
|
the difference between the actual rate or amount in the population and that of the sample
|
|
|
sampling risk
|
the risk that the auditors conclusions would be different than if they tested the whole population
|
|
|
sequential sampling
|
a sampling plan in which the sample is selected in stages, with the need for each subsequent stage being conditional on the results of the previous page
|
|
|
stratification
|
dividing a population into two or more relatively homogeneous subgroups. stratification increases the efficiency of most samploing plans by reducing the variability of items in each stratum. the sample size necessary to evaluate the strate separately is smaller than would be needed to evaluate the total population
|
|
|
systematic selection
|
selecting every nth item in the population, following one or more starting points
|
|
|
tolerable deviation rate
|
an estimate of the maximum monetary misstatement that may exist in an account balance without causing the financial statements to be materially misstated.
|
|
|
Variables sampling
|
sampling plans designed to estimate a numerical measurement of a population, such as a dollar value
|
|
|
voucher
|
a document authorizing a cash disbursement. a voucher usually provides space for the initials of employees performing various approval functions.
|
