Matching
Match the five definitions provided below with the correct term.
Premises:
a method of variables sampling in which the auditor estimates the population misstatement by multiplying the average misstatement in the sample by the total number of populations items, and also calculates sampling risk
the risk that the auditor is willing to take of concluding a balance is materially misstated when it is, in fact, fairly stated
a method of sampling in which all the elements in the total population are divided into two or more subpopulations that are independently tested and statistically measured
a method of projecting from the sample to the population to estimate the population misstatement, commonly by assuming that misstatements in the unaudited population are proportional to the misstatements found in the sample
a method of variables sampling in which the auditor estimates the population misstatement by multiplying the portion of sample dollars misstated by the total recorded population book value, and also calculates sampling risk
Responses:
point estimate
mean-per-unit estimation
variable sampling
allowable risk of incorrect rejection
probability-proportional-to-size sample selection
monetary-unit sampling
ratio estimation
statistical inferences
stratified sampling
misstatement bounds
allowable risk of incorrect acceptance
difference estimation
Correct Answer:
Premises:
Responses:
point estimate
mean-per-unit estimation
variable sampling
allowable risk of incorrect rejection
probability-proportional-to-size sample selection
monetary-unit sampling
ratio estimation
statistical inferences
stratified sampling
misstatement bounds
allowable risk of incorrect acceptance
difference estimation
Premises:
point estimate
mean-per-unit estimation
variable sampling
allowable risk of incorrect rejection
probability-proportional-to-size sample selection
monetary-unit sampling
ratio estimation
statistical inferences
stratified sampling
misstatement bounds
allowable risk of incorrect acceptance
difference estimation
Responses:
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