CPA Audit Module 74
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Statistical sampling helps the auditor to do what?
Design an efficient sample
Measures the sufficiency of the evidential matter obtained
Evaluate the sample results

These 3 things describe what?
Design an efficient sample
Measures the sufficiency of the evidential matter obtained
Evaluate the sample results
Statistical sampling

What is the risk of assessing control risk too high?
 The risk of assessing control risk too high is the risk that
 the sample does not support the auditors planned assessed level of control risk
 when the true operating effectiveness of the control structure justifies such
 an assessment.

__________________ arises from the possibility
that an auditors on conclusions based upon a sample would differ from the on conclusions
which would be drawn from examining the entire population.
 Sampling risk arises from the
 possibility that an auditors on conclusions based upon a sample would differ
 from the on conclusions which would be drawn from examining the entire
 population.

What is sampling risk?
 Sampling risk arises from the possibility that an auditors
 on conclusions based upon a sample would differ from the on conclusions which
 would be drawn from examining the entire population.

__________________ is used to reach a conclusion about a
population in terms of a rate of occurrence
 Attribute sampling is used to reach a conclusion about a
 population in terms of a rate of occurrence

What is Attribute sampling?
 Attribute sampling is used to reach a conclusion about a
 population in terms of a rate of occurrence

What kind of sampling is used to reach a conclusion about a
population in terms of a rate of occurrence?
Attribute sampling

______________________ is used to minimize the variance
within the overall population
 Stratified sampling is used to minimize the variance within
 the overall population

What is stratified sampling used for?
 Stratified sampling is used to minimize the variance within
 the overall population

_________________ is calculated to determine the range of
procedural deviations in the population
 Tolerable rate is calculated to determine the range of
 procedural deviations in the population

Increases in the __________________ increase the sample size
 Increases in the expected misstatement increase the sample
 size

Increase in _____________________ decrease the sample size
Increase in tolerable misstatement decrease the sample size

A increase in the risk of assessing control risk to low does
what to the sample size?
It will decrease the sample size

A increase in the tolerable rate will do what to sample
size?
It will decrease the sample size

A increase in the expected population deviation rate will do
what to sample size?
It will increase the sample size

A increase in population will do what to the sample size?
 I will
 increase the sample size slightly depending on the size of the population

A increase in the risk of incorrect acceptance will do what
to sample size?
It will decrease the sample size

A increase in the risk of incorrect rejection will do what
to the sample size?
It will decrease the sample size

A increase in the risk of tolerable misstatement will do
what to the sample size?
It will decrease the sample size.

A increase in the risk of expected misstatement will do what
to the sample size?
It will increase the sample size

A increase in the population will do what to the sample
size?
It will increase the sample size.

A increase in the variation
(standard deviation) will do what to sample size?
It will increase the sample size

For variables sampling, what cause the sampling size to decrease?
 Increases in the risk of incorrect acceptance
 increases in the risk of incorrect rejection
 increases in the risk of tolerable misstatement

For variables sampling, what cause the sampling size to increase?
 increase in expected misstatement
 increase in population
 increase in variation

for attribute sampling, what causes a decrease in sample size
 increases in the risk of assessing control risk too low
 increases in the tolerable rate

for attribute sampling, what causes a increase in sample size
 increases in the expected population deviation rate
 increases in population