51 (OBJECTIVE 15-1) Distinguish between sampling risk and nonsampling risk. How can REVIEW QUESTI between each be reduced? 15-2 (OBJECTIVE 15-2) What are the three main phases of audit sampling? Are these phases the same for statistical and nonstatistical sampling methods? sample selection. 15-3 (OBJECTIVE 15-2) Explain the difference between probabilistic and nonprobabilistic S4 (oBjECTIVE 15-2) Explain what is meant by block sample selection and describe how an can obtain five blocks of 20 sales invoices from a sales journal 5-5 (OBJECTIVE 1s-3) Explain the difference between replacement sampling and nonre- Which method do auditors usually follow? Why? ent sampling. 15-6 (OBJECTIVE I5-3) What are the two types of simple random sample selection methods? Which of the two methods is used most often by auditors and why? 15-7 (OBJECTIVE IS-3) Describe systematic sample selection and explain how an auditor will select 40 numbers from a population of 2,800 items using this approach. What are the advantages and disadvantages of systematic sample selection 15-8 (OBJECTIVE 15-3) Distinguish between probabilistic selection and statistical measure- ment. State the circumstances under which one can be used without the other. 15-9 (OBJECTIVE 15-4) What is the purpose of using nonstatistical sampling for tests of con- trols and substantive tests of transactions? 15-10 (OBJECTIVE 15-4) What is meant by an attribute in sampling for tests of controls and substantive tests of transactions? What is the source of the attributes that the auditor selects? 15-11 (OBJECTIVE 15-4) Explain the difference between a tion. State the exception condition for the audit procedure: The duplicate sales invoice has n attribute and an exception condi- een initialed, indicating the performance of internal verification. 15-12 (OBJECTIVE 15-5) Define each of the following terms: Acceptable risk of overreliance (ARO) b. Computed upper exception rate (CUER) Estimated population exception rate (EPER) d. Sample exception rate (SER) Tolerable exception rate 15-13 S3 (BECTIVE 15-5) Describe what is meant by a sampling unit. Explain why the sam pling unit for verifying the occurrence of recorded sales differs from the sampling unit for sting for the possibility of omitted sales 4(OBJECTIVE 15-5) Distinguish between the TER and the CUER. determined How is each 15-14 ppropriate to R Compare the sample size for a TER of 7% with that of 4%, all other factors being equal. (OBJECTIVE 15-5) Identify the factors an auditor uses to decide the UDIT SAMPLING FOR TESTS OF CONTROLS AND SUBSTANTIVE TESTS OF TRAN Chapter 15/A