ACC 406 Audit Midterm 2 || 100% Verified Answers.
Allowance for sampling risk correct answers The uncertainty that results from sampling; the
difference between the expected mean of the population and the tolerable deviation or
misstatement
Attribute sampling correct answers Sampling used to estimate the proportion of a population that
possesses a specified characteristic
Audit sampling correct answers The selection and evaluation of less than 100 percent of the
population of audit relevance such that the auditor expects the items selected to be representative
of the population and, thus, likely to provide a reasonable basis for conclusions about the
population
Classical variables sampling correct answers The use of normal distribution theory to estimate
the dollar amount of misstatement for a class of transactions or an account balance
Desired confidence level correct answers The probability that the true but unknown measure of
the characteristic of interest is within specified limits
Expected population deviation rate correct answers The deviation rate that the auditor expects to
exist in the population
Monetary-unit sampling correct answers Attribute-sampling techniques used to estimate the
dollar amount of misstatement for a class of transactions or an account balance
Nonsampling risk correct answers The risk that the auditor reaches an erroneous conclusion
Nonstatical sampling correct answers Audit sampling that relies on the auditor's judgment to
determine sample size, select the sample, and/or evaluate the results for the purpose of reaching a
conclusion about the population
, Representative sample correct answers The evaluation of the sample will result in conclusions
that are similar to those that would be drawn if the same procedures were applied to the entire
population
Risk of incorrect acceptance correct answers The risk that the sample supports the conclusion
that the control is operating effectively when it is not or that the recorded account balance is not
materially misstated when it is materially misstated
Risk of incorrect rejection correct answers The risk that the sample supports the conclusion that
the control is not operating effectively when it actually is or that the recorded account balance is
materially misstated when it is not materially misstated
Sampling risk correct answers The possibility that the sample drawn is not representative of the
population and that, as a result, the auditor reaches an incorrect conclusion about the reliability
of the control, the account balance, or class of transactions based on the sample.
Sampling unit correct answers The individual items constituting a population being sampled
Statistical sampling correct answers Sampling that uses the laws of probability to select and
evaluate the results of an audit sample, thereby permitting the auditor to quantify the sampling
risk for the purpose of reaching a conclusion about the population
Tolerable deviation rate correct answers The maximum deviation rate from a prescribed control
that the auditor is willing to accept without altering the planned assessed level of control risk
Confidence bound correct answers Measure of sampling risk added and subtracted to the
projected misstatement to form a confidence interval
Expected misstatement correct answers The amount of misstatement that the auditor believes
exists in the population
Allowance for sampling risk correct answers The uncertainty that results from sampling; the
difference between the expected mean of the population and the tolerable deviation or
misstatement
Attribute sampling correct answers Sampling used to estimate the proportion of a population that
possesses a specified characteristic
Audit sampling correct answers The selection and evaluation of less than 100 percent of the
population of audit relevance such that the auditor expects the items selected to be representative
of the population and, thus, likely to provide a reasonable basis for conclusions about the
population
Classical variables sampling correct answers The use of normal distribution theory to estimate
the dollar amount of misstatement for a class of transactions or an account balance
Desired confidence level correct answers The probability that the true but unknown measure of
the characteristic of interest is within specified limits
Expected population deviation rate correct answers The deviation rate that the auditor expects to
exist in the population
Monetary-unit sampling correct answers Attribute-sampling techniques used to estimate the
dollar amount of misstatement for a class of transactions or an account balance
Nonsampling risk correct answers The risk that the auditor reaches an erroneous conclusion
Nonstatical sampling correct answers Audit sampling that relies on the auditor's judgment to
determine sample size, select the sample, and/or evaluate the results for the purpose of reaching a
conclusion about the population
, Representative sample correct answers The evaluation of the sample will result in conclusions
that are similar to those that would be drawn if the same procedures were applied to the entire
population
Risk of incorrect acceptance correct answers The risk that the sample supports the conclusion
that the control is operating effectively when it is not or that the recorded account balance is not
materially misstated when it is materially misstated
Risk of incorrect rejection correct answers The risk that the sample supports the conclusion that
the control is not operating effectively when it actually is or that the recorded account balance is
materially misstated when it is not materially misstated
Sampling risk correct answers The possibility that the sample drawn is not representative of the
population and that, as a result, the auditor reaches an incorrect conclusion about the reliability
of the control, the account balance, or class of transactions based on the sample.
Sampling unit correct answers The individual items constituting a population being sampled
Statistical sampling correct answers Sampling that uses the laws of probability to select and
evaluate the results of an audit sample, thereby permitting the auditor to quantify the sampling
risk for the purpose of reaching a conclusion about the population
Tolerable deviation rate correct answers The maximum deviation rate from a prescribed control
that the auditor is willing to accept without altering the planned assessed level of control risk
Confidence bound correct answers Measure of sampling risk added and subtracted to the
projected misstatement to form a confidence interval
Expected misstatement correct answers The amount of misstatement that the auditor believes
exists in the population
