| For each item, select the proper statistical term. Terms are only used once and each item has only one correct answer. | Hanna, CPA, identified the item in which a selected dollar fell within. | | | | Determined by multiplying the projected misstatement by the incremental change in the confidence factor minus one. | | | | Determined as the difference between recorded and audited balances. | | | | The maximum rate where an auditor accepts or rejects the reliance on an internal control. | | | | Based on a statistical sample, Johnson, CPA, concluded the client's control was functioning effectively when the population deviation rate was actually unacceptable. | | | | The likelihood of achieving a given level of precision. | | | | Jensen, CPA, selected a sample of invoices associated with customer files drawn haphazardly from a file drawer but then used statistical sampling methods to make her incorrect conclusion about accounts receivable. | | | | Determined by multiplying the sampling interval by the confidence factor. | | | | Estimated based on prior audits or a pilot sample of controls. | | | | Determined based on the tolerable deviation, expected deviation, and risk of overreliance. | | | A. | Sampling risk | | B. | Nonsampling risk | | C. | Sampling interval | | D. | Precision interval | | E. | Reliability | | F. | Tolerable deviation rate | | G. | Expected deviation rate | | H. | Sample size | | I. | Sample deviation rate | | J. | Upper limit deviation rate | | K. | Logical unit | | L. | Tainting percentage | | M. | Projected misstatement | | N. | Actual misstatement | | O. | Basic allowance for sampling risk | | P. | Incremental allowance for sampling risk | | |
