CPA Audit Review Module 7-3

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Joens1313
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292786
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CPA Audit Review Module 7-3
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2015-01-11 18:30:02
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CPA Audit Review Module
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CPA Audit Review Module 7-3
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  1.  

    ________________________________ is the risk that the sample supports the conclusion that the recorded account balance is materially misstated when it is not materially misstated.
    Risk of incorrect rejection
  2. What is Risk of incorrect rejection?
    • Risk of incorrect rejection is the risk that the sample supports the conclusion that the recorded account balance is materially
    • misstated when it is not materially misstated.
  3. __________________________________ is the risk that the
    sample supports the conclusion that the recorded account balance is not
    materially misstated when it is materially misstated.
    Risk of incorrect acceptance
  4. What is risk of incorrect acceptance?
    • Risk of incorrect acceptance is the risk that the sample supports the conclusion that the recorded account balance is not materially
    • misstated when it is materially misstated.
  5. The risk of incorrect rejection relate to audit
    ______________________
    Efficiency
  6. The risk of incorrect acceptance relates to audit
    ______________________
    Effectiveness
  7. The risk that relates to audit efficiency is
    __________________________
    The risk of incorrect rejection
  8. The risk that relate to audit effectiveness is
    _____________________
    The risk of incorrect acceptance
  9. As ________________________ increases the sample size decreases.
    Tolerable misstatement
  10. As tolerable misstatement increases the __________________ decreases.
    Sample size
  11. As tolerable misstatement________________ the sample size decreases.
    As tolerable misstatement increases the sample size decreases.
  12. As tolerable misstatement increases the sample size _____________________.
    • As tolerable misstatement increases the sample size
    • decreases.
  13. As _____________________ increase, a larger sample size is required.
    As expected misstatement increase, a larger sample size is required.
  14. As expected misstatement increase, a __________ sample size is required.
    As expected misstatement increase, a larger sample size is required.
  15. As expected misstatement increase, a larger _________________
    is required.
    • As expected misstatement increase, a larger sample size is
    • required
  16. As expected misstatement____________, a larger sample size is required.
    As expected misstatement increase, a larger sample size is required.
  17. _________________ increases as projected misstatement approaches tolerable error.
    Sampling risk increases as projected misstatement approaches tolerable error.
  18. Sampling risk___________ as projected misstatement
    approaches tolerable error.
    • Sampling risk increases as projected misstatement approaches
    • tolerable error.
  19. Sampling risk increases as projected misstatement approaches
    ______________________.
    • Sampling risk increases as projected misstatement approaches
    • tolerable error.
  20. _______________________ is a sampling plan enabling the auditors to estimate the deviation rate in a population
    Attributes sampling is a sampling plan enabling the auditors to estimate the deviation rate in a population
  21. Attributes sampling is……………………..
    • Attributes sampling is a sampling plan enabling the auditors
    • to estimate the deviation rate in a population
  22. _______________ is a defined rate of departure from
    prescribed controls.
    • Deviation rate is a defined rate of departure from
    • prescribed controls.
  23. Deviation rate is ……………………….
    Deviation rate is a defined rate of departure from prescribed controls
  24. Deviation rate is also referred as ………………
    Occurrence rate and exception rate
  25. _______________ is the risk that the auditor reaches an erroneous conclusion for any reason not related to sampling risk.
    Non-sampling risk is the risk that the auditor reaches an erroneous conclusion for any reason not related to sampling risk.
  26. Non-sampling risk is ……………………………
    • Non-sampling risk is the risk that the auditor reaches an
    • erroneous conclusion for any reason not related to sampling risk.
  27. __________________________________ is the risk 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 high is the risk that the assessed level of control risk based on the sample is greater than the true
    • operating effectiveness of the control.
  28. Risk of assessing control risk too high is …………………….
    • Risk of assessing control risk too high is the risk that the assessed level of control risk based on the sample is greater than the true
    • operating effectiveness of the control.
  29. What is it when the auditor concludes that the system
    operates less effectively than it actually does
    Risk of assessing control risk too high
  30. _____________________________ is when the assessed level of control risk based on the sample is less than the true operating effectiveness
    of the controls.
    • Risk of assessing control risk too low is when the assessed level of control risk based on the sample is less than the true operating
    • effectiveness of the controls.
  31. Risk of assessing control risk too low is when………………………………
    • Risk of assessing control risk too low is when the assessed level of control risk based on the sample is less than the true operating
    • effectiveness of the controls.
  32. What is it when the auditor concludes that the system operates more effectively than it actually does?
    Risk of assessing control risk to low.
  33. _______________________ is when the
    risk that sample results indicate that a population is not materially misstated
    when in fact it is materially misstated.
    • Risk of incorrect acceptance is
    • when the risk that sample results indicate that a population is not materially
    • misstated when in fact it is materially misstated.
  34. Risk of incorrect acceptance is ………………………….
    • Risk of incorrect acceptance is when the risk that sample results indicate that a population is not materially misstated when in fact it
    • is materially misstated.
  35. ________________________ is the risk that sample results indicate that a population is materially misstated when in fact it is not
    Risk of incorrect rejection is the risk that sample results indicate that a population is materially misstated when in fact it is not
  36. Risk of incorrect rejection is ………………………………..
    Risk of incorrect rejection is the risk that sample results indicate that a population is materially misstated when in fact it is not
  37. _______________________ is audit sampling that uses the laws of probability for selecting and evaluating a sample from a population for the
    purpose of reaching a conclusion about the population
    • Statistical sampling is audit sampling that uses the laws of probability for selecting and evaluating a sample from a population for the
    • purpose of reaching a conclusion about the population
  38. Statistical sampling is ………………………………………
    • Statistical sampling is audit sampling that uses the laws of probability for selecting and evaluating a sample from a population for the
    • purpose of reaching a conclusion about the population
  39. __________________________ are sampling plans designed to estimate a numerical measurement of a population such as a dollar.
    Variables sampling are sampling plans designed to estimate a numerical measurement of a population such as a dollar.

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