Cia Part I - Su 5.3 Attribute Sampling

Front 1

When is attribute sampling appropriate?

Back 1

for discrete variables e.g. test of controls

Front 2

Which criterion is appropriate for stratification in attribute sampling?

Back 2

turnover volume of goods sold

Front 3

On which three factors does the sample size for an attribute test depend?

Back 3

- confidence level i.e. confidence coefficient (the greater it is, the larger the sample size)
- expected deviation rate (the greater the expected deviation rate in the population, the larger the sample size)

- tolerable deviation rate (as the tolerable deviation rate increases, the sample size can decrease)

Front 4

How does the sample size relate to the confidence level, expected deviation rate and tolerable deviation rate in a formula?

Back 4

Front 5

What does the expected deviation rate express and how is it determined?

Back 5

the expected population deviation rate, estimated or observed from apreliminary sample

Front 6

How is the expected deviation rate called as well?(3)

Back 6

- expected rate of occurence

- expected error rate

- anticipated population deviation rate

Front 7

What does the maximum tolerable deviation rate express?

Back 7

the maximum acceptable error rate that can be found in the population so that the control is still considered effective (e.g. the number of missing signatures on invoices under which the auditor considers there is no issue)

Front 8

How is the maximum tolerable deviation rate determined?

Back 8

it is set by the auditor

Front 9

How large should themaximum tolerable deviation rate be set compared to theexpected deviation rate?

Back 9

higher than the expected deviation rate

Front 10

What are the other expressions for tolerable deviation rate?(2)

Back 10

- desired precision

- tolerable error rate

Front 11

How is the difference between the maximum tolerable deviation rate and the expected deviation rate calledwhen determining the sample size?(2)

Back 11

- planned precision

- desired precision (according to Wiley)

Front 12

How does the size of the planned precision (allowance for sampling risk) influence the sample size?

Back 12

the tighter the planned precision, the larger larger the sample size

Front 13

How is the sampling result evaluated regarding the control's effectiveness?

Back 13

Front 14

How is the sampling result projected to the population (EDR)

Back 14

Front 15

How is the achieved precision calculated (SE)?

Back 15

Front 16

What does the achieved precision indicate?

Back 16

the difference between the sample parameter (i.e. the actual sample result) and the true (but unknown) population parameter

Front 17

What does the achieved precision represent in the projection of sample results to the population?

Back 17

the uncertainty

Front 18

About which precision limit (upper or lower limit) are IA concerned with in attribute sampling?

Back 18

upper limit, i.e., with the risk of assessing control risk too low

Front 19

When is a control considered ineffective?

Back 19

upper deviation limit (ULD = EDR + SE) > tolerable deviation rate

Front 20

If no deviations have been found in the sample, is the maximum deviation rate equal to zero?

Back 20

Hint 20

> 0 according to statistical results evaluation table

Front 21

What effect does an increase in confidence level from 95% to 99% have on achieved precision if sample size is increased?

Back 21

achieved precision does not change

Front 22

Given the sample size, the tolerable deviation rate, and the sample deviation rate, when is SAMPLING RISK in an attribute sampling plan the greatest?

Back 22

- the smaller the sample size (the smaller the sample size, the larger the achieved precision)

- the smaller the difference between the tolerable deviation rate and the sample deviation rate

Front 23

In what does a decrease in the confidence level result with regard to sampling effectiveness and efficiency?

Back 23

decrease in sampling effectiveness

Front 24

In what does a decrease in the tolerable deviation rate result with regard to sampling effectiveness and efficiency?

Back 24

decrease in sampling efficiency

Front 25

what are the other two attribute sampling methods?

Back 25

- discovery sampling

- stop-or-go sampling

Front 26

Which purpose is discovery sampling designed for?(2)

Back 26

- to determine whether fraud has occurred in the first place rather than to estimate its overall frequency, when even one case of fraud is critical

- to uncover an attribute that exists in the population with a low or zero rate of occurrence

Front 27

how is the sample size in discovery sampling calculated?

Back 27

- in a way that it will include at least one instance of a deviation if deviations occur in the population at a rate larger than the assumed occurrence rate (assumption: occurrence rate is 0%)

Front 28

What does discovery sampling allow the IA to conclude if no errors in the sample are found?

Back 28

that the assumed low or zero error rate in the population is a valid assumption

Front 29

What is the consequence if deviations are found in discovery sampling?

Back 29

statistical evaluation of results is impossible

Front 30

What is discovery sampling not suited for to assess?

Back 30

the level of assurance of internal controls

Front 31

What does stop-or-go sampling aim to conclude regarding the error rate of the population?

Back 31

that the error rate is below a predefined level at at a given confidence level

Front 32

what is stop or go sampling good for?(2)

Back 32

- for reducing the sample size when it is believed that the error rate in the population is low

- for checking if the error rate is indeed below a certain level for the assurance level provided when the outcome of a system audit (e.g. audits of control) is questioned

Front 33

how many sample items are examined in stop or go sampling?

Back 33

as few as possible,but as many as necessary to be able to state that the deviation rate in the population is below a specified rate at a specified confidence level

Front 34

When is taking samples in stop-or-go sampling stopped?

Back 34

as soon as as the expected result is reached

Front 35

how can the desired result (a specified maximum level of noncompliance) be achieved in stop or go sampling?

Back 35

by expanding the sample if deviations are found

Front 36

What is stop-or-go sampling not suited for?

Back 36

for projecting the sample results to the population