Question
Key Terms Match the items A X below to the related definition. Some items may be used once, more than once or not at all.
Key Terms Match the items A X below to the related definition. Some items may be used once, more than once or not at all.
A | Block sample selection | G | Sample exception rate (SER) | M | Computed upper exception rate (CUER) | S | Haphazard sample selection |
B | Attribute | H | Nonstatistical sampling | N | Sampling risk | T | Random Error Rate |
C | Exception rate | I | Sample Distribution | O | Audit sampling | U | Random sample |
D | Tolerable exception rate (TER) | J | Nonsampling risk | P | Statistical sampling | V | Planned Rate |
E | Initial sample size | K | Attributes sampling | Q | ARO | W | Representative sample |
F | Probabilistic sample selection | L | Nonprobabilistic sample selection | R | Estimated population exception rate (EPER) | X | Acceptable risk of overreliance (ARO) |
The upper limit of the probable population exception rate; the highest exception rate in the population at a given ARO |
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A statistical, probabilistic method of sample evaluation that results in an estimate of the proportion of items in a population containing a characteristic or attribute of interest |
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Sample size determined by professional judgment (nonstatistical sampling) or by statistical tables (attributes sampling) |
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A nonprobabilistic method of sample selection in which items are chosen without regard to their size, source, or other distinguishing characteristics |
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The percent of items in a population that include exceptions in prescribed controls or monetary correctness |
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The risk that the auditor is willing to take of accepting a control as effective or a rate of monetary misstatements as tolerable when the true population exception rate is greater than the tolerable exception rate |
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Exception rate the auditor expects to find in the population before testing begins |
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The characteristic being tested for in the population |
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A nonprobabilistic method of sample selection in which items are selected in measured sequences |
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A sampling procedure that does not permit the numerical measurement of the sampling risk |
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Testing less than 100 per cent of a population for the purpose of making inferences about that population |
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A sample in which every possible combination of elements in the population has an equal chance of constituting the sample |
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The risk that the auditor fails to identify existing exceptions in the sample; nonsampling risk (nonsampling error) is caused by failure to recognize exceptions and by inappropriate or ineffective audit procedures |
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A method of sample selection in which the auditor uses professional judgment to select items from the population |
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A method of selecting a sample such that each population item has a known probability of being included in the sample and the sample is selected by a random process |
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A sample with characteristics the same as those of the population |
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The use of mathematical measurement techniques to calculate formal statistical results and quantify sampling risk |
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The exception rate that the auditor will permit in the population and still be willing to conclude the control is operating effectively |
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