Answer all questions for class discussion

Control Testing Exercise 2

Questions

1)

Conceptually, confidence level and risk in the audit risk model as well as tolerable

deviation rate and materiality in the risk model are very similar. Be prepared to explain

this statement and discuss why they are similar.

2)

Describe the conditions under which an auditor might choose to select a sampling

technique, either statistical or non-statistical, over a non-sampling technique and visa

versa.

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3)

How does non-statistical sampling differ from statistical sampling and when might an

auditor choose one over the other