Basic to audit sampling is _____________________, the risk that the auditors conclusion based on the sample may be different from the conclusion if the entire population were subject to the same audit procedure.
sampling risk
What is sampling risk?
sampling risk is the risk that the auditors conclusion based on the sample may be different from the conclusion if the entire population were subject to the same audit procedure.
sampling risk is............._____,
the risk that the auditors conclusion based on the sample may be different from the conclusion if the entire population were subject to the same audit procedure.
What do both non-statistical and statistical sampling provide or involve?
Both involve judgment in planning, executing the sampling plan, and evaluating the results of the sample.
Both can provide sufficient appropriate audit evidence.
Statistical sampling helps the auditor to......
Design an effient sample
Measure the sufficiency of the audit evidence obtained
Evaluate the sample results (The auditor can objectively quantify sampling risk to limit it to a level considered acceptable)
What is the difference between statistical sampling and non-statistical sampling?
Statistical sampling provides the following that non-statistical does not provide.......
Design an effient sample
Measure the sufficiency of the audit evidence obtained
Evaluate the sample results (The auditor can objectively quantify sampling risk to limit it to a level considered acceptable)
______________ is a combination of the risk that a material misstatement will occur and the risk that it will not be detected by the auditor
Audit Risk
What is audit risk?
Audit Risk is a combination of the risk that a material misstatement will occur and the risk that it will not be detected by the auditor
What are the 3 factors of audit risk?
Inherent Risk
Control Risk
Detection Risk
What are these 3 factors?
Inherent Risk
Control Risk
Detection Risk
They all make up audit risk.
_______________________includes all aspects of audit risk that are not due to sampling.
non sampling risk
What kind of risk is this an example of?
The failure to select appropriate audit procedures
This is a non sampling risk
What are some examples of non sampling risk
The failure to select appropriate audit procedures
The failure to recognize misstatements in documents examined
Misinterpreting the results of audit tests
What kind of risk is this an example of?
Misinterpreting the results of audit tests
This is a non sampling risk
___________________________ include the risk of incorrect rejection and the risk of incorrect acceptance.
Substantive test sampling risks
What is Substantive test sampling risks
Substantive test sampling risks include the risk of incorrect rejection and the risk of incorrect acceptance.
______________________ are used to obtain evidence about the validity and propriety of the accounting treatment of transactions and balances
Substantive test
What are substantive test used for?
Substantive test are used to obtain evidence about the validity and propriety of the accounting treatment of transactions and balances
What are the types of statistical sampling plans?
Attributes sampling
Variables sampling
What type of plans are attributes sampling and variables sampling
statistical sampling plans
Attributes sampling reaches a conclusion in terms of a rate of occurrence
Attributes sampling
What is Attributes sampling used for?
Attributes sampling reaches a conclusion in terms of a rate of occurrence
Variables sampling reaches a conclusion in dollar amounts or units
Variables sampling
What is Variables sampling used for?
Variables sampling reaches a conclusion in dollar amounts or units
Attributes sampling is used in what kind of testing?
controls testing
What kind of sampling is used in control testing
Attributes sampling
Variables sampling is using in what kind of testing
Substantive testing
What kind of sampling is used in substantive testing
Variables sampling
What are the sub-types of variable sampling
Probability proportional to size sampling
Classical variables sampling techniques
What sub-sampling types are Probability proportional to size sampling and Classical variables sampling techniques