AUD-Lesson 5_GRADUAL Flashcards

1
Q

What is a non-sampling risk?

A

The error is not detected because there is a human error.

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2
Q

What is a sampling risk?

A

The sample is not representative of the population, leading to the incorrect conclusion

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3
Q

What are the two types of sampling risk errors?

A

Type I risk, and Type II risk.

Type I:
Is where the population is ok, but the sample is not good. This deals with efficiency

Type II:
The population is bad, but based on the sample the auditor thinks it’s ok. This deals with effectiveness.

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4
Q

What are the random sampling methodologies?

A

Random Number Sampling
Systemic Sampling
Haphazard Sampling
Block Sampling

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5
Q

What is stop-or-go sampling?

A

Is a special type of attribute sampling that allows the auditor to stop when sufficient data is gathered.

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6
Q

What is attribute sampling?

A

Sampling that examines a sample of items from a population to determine what percentage of them contain a specific attribute

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7
Q

What is variables sampling?

A

Dollars are tested. Such as account balances Is the balance accepted or rejected?

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8
Q

What is random number sampling?

A

Numbered docuements are selected through random number tables or computer software.

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9
Q

What is dollar-unit sampling, or CMA Sampling?

A

Is a form of sampling that selects items to sample by their dollar amount and their affect on the cumulative balance.

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