Auditing Chapter 9

Front 1

Atttribute sampling

Back 1

A sampling plan enabling the auditros to estimate the rate of deviation (occurrence) in a population.

Front 2

confidence level

Back 2

In attributes sampling, the complement of the risk of assessing control risk too low.

Front 3

Deviation rate

Back 3

A defined rate of departure from prescriebed controls

Front 4

Discovery sampling

Back 4

A sampling plan for locating at least 1 deviation, providing that hthe deviation occurs in the population with a specified frequency.

Front 5

Expected population deviation rate

Back 5

An advance estimate of a deviation rate

Front 6

mean

Back 6

the average item value, computed by dividing total value by the number of items composing total value.

Front 7

Nonsampling risk

Back 7

the aspects of audit risk not due to sampling. Normally relates to human rather than statistical errors.

Front 8

Population

Back 8

the entire field of items from which a sample might be drawn.

Front 9

Probability-proportional-to-size sampling

Back 9

A variables estimation procedure that uses attributes theory to express a conclusion in monetary (dollar) amounts.

Front 10

Random selection

Back 10

Selecting items from a population in a manner in which every item has anequal chance of being included in the sample.

Front 11

Reliability

Back 11

The complement of the risk of incorrect acceptance.

Front 12

Representative sample

Back 12

A xample possessing essentiallythe same characteristics as the population from which it was drawn.

Front 13

Risk of assessing control risk too high

Back 13

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

Front 14

Sampling error

Back 14

the difference between the actual rate or amount in the population and that of the sample.

Front 15

Standard deviation

Back 15

A measure of the variability or dispertion of item values within a population;

Front 16

stratification

Back 16

Dividing a population into two or more relatively homogeneous subgroups. Stratification increases the efficiency of most sampling plans by reducing the variability of tiems in each stratum.

Front 17

Tolerable deviation rate

Back 17

the maximum population rate of deviations from a prescribed control that the auditor will tolerate without modifying the planned assessment of control risk.

Front 18

Variables sampling

Back 18

Sampling plans designed to estimate a numerical measurement of a populaiton, such as a dollare value.