The flashcards below were created by user
Joens1313
on FreezingBlue Flashcards.

________________________________ 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

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.

__________________________________ 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

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.

The risk of incorrect rejection relate to audit
______________________
Efficiency

The risk of incorrect acceptance relates to audit
______________________
Effectiveness

The risk that relates to audit efficiency is
__________________________
The risk of incorrect rejection

The risk that relate to audit effectiveness is
_____________________
The risk of incorrect acceptance

As ________________________ increases the sample size decreases.
Tolerable misstatement

As tolerable misstatement increases the __________________ decreases.
Sample size

As tolerable misstatement________________ the sample size decreases.
As tolerable misstatement increases the sample size decreases.

As tolerable misstatement increases the sample size _____________________.
 As tolerable misstatement increases the sample size
 decreases.

As _____________________ increase, a larger sample size is required.
As expected misstatement increase, a larger sample size is required.

As expected misstatement increase, a __________ sample size is required.
As expected misstatement increase, a larger sample size is required.

As expected misstatement increase, a larger _________________
is required.
 As expected misstatement increase, a larger sample size is
 required

As expected misstatement____________, a larger sample size is required.
As expected misstatement increase, a larger sample size is required.

_________________ increases as projected misstatement approaches tolerable error.
Sampling risk increases as projected misstatement approaches tolerable error.

Sampling risk___________ as projected misstatement
approaches tolerable error.
 Sampling risk increases as projected misstatement approaches
 tolerable error.

Sampling risk increases as projected misstatement approaches
______________________.
 Sampling risk increases as projected misstatement approaches
 tolerable error.

_______________________ 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

Attributes sampling is……………………..
 Attributes sampling is a sampling plan enabling the auditors
 to estimate the deviation rate in a population

_______________ is a defined rate of departure from
prescribed controls.
 Deviation rate is a defined rate of departure from
 prescribed controls.

Deviation rate is ……………………….
Deviation rate is a defined rate of departure from prescribed controls

Deviation rate is also referred as ………………
Occurrence rate and exception rate

_______________ is the risk that the auditor reaches an erroneous conclusion for any reason not related to sampling risk.
Nonsampling risk is the risk that the auditor reaches an erroneous conclusion for any reason not related to sampling risk.

Nonsampling risk is ……………………………
 Nonsampling risk is the risk that the auditor reaches an
 erroneous conclusion for any reason not related to sampling risk.

__________________________________ 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.

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.

What is it when the auditor concludes that the system
operates less effectively than it actually does
Risk of assessing control risk too high

_____________________________ 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.

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.

What is it when the auditor concludes that the system operates more effectively than it actually does?
Risk of assessing control risk to low.

_______________________ 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.

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.

________________________ 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

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

_______________________ 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

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

__________________________ 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.

