Exam 17: Overview of Sampling

In attributes sampling,the maximum rate of deviations permitted by the auditor without modifying the planned reliance on internal control is referred to as the __________________________________.

Which of the following would typically result in nonsampling risk?

Block selection is typically not appropriate for use with statistical sampling applications.

Which of the following refers to the numeric distance from the estimated population value in which the true (but unknown)population value may lie with a given probability?

After the auditor has defined the population to be examined,the next step would be to

In an attributes sampling application,the auditor is typically more concerned with controlling the risk of assessing control risk too low than the risk of assessing control risk too high.

In the study of internal control,the auditor uses sampling to compare the ____________ to the _____________.

The following are descriptions representing different sampling risks associated with attributes and variables sampling.Indicate,using the correct letter,which term is most closely associated with the definition.Each term is associated with only one description.

If you were interested in estimating each of the following,in which case would you be least likely to use attributes sampling?

______________ selection involves selecting a series of contiguous (or adjacent)items from the population.

Which of the following stages of the sampling process does not necessarily differ for statistical sampling and nonstatistical sampling?

In which of the following scenarios would the use of sampling be most appropriate?

The precision interval has a _______________ percent probability of including the ______________.

One method of increasing the likelihood that a representative sample is selected is ensuring that all items have an equal opportunity to be selected.

Which of the following sampling risks is associated with the use of variables sampling?

The following are descriptions of components of the audit risk model.Indicate,using the correct letter,which component is most closely associated with the example.Each component is associated with only one description.

The distance from the sample estimate that has a certain likelihood (equal to reliability)of including the true population value is known as the

For each of the following situations related to determining the average weight of a National Football League player,indicate how the appropriate sample size would change by using the letters I (increase),D (decrease),or N (no change).Assume that all other factors are held constant. ____ 1.The desired level of precision changes from 20 pounds to 10 pounds. ____ 2.The sampling risk increases from 5 percent to 10 percent. ____ 3.The number of football players in the population increases from 1,400 to 1,600. ____ 4.You initially want to estimate the weight for offensive linemen only but decide to in include quarterbacks,running banks,and placekickers. ____ 5.Your initial sample estimate changes from 250 pounds to 230 pounds.

Why does the risk of incorrect rejection result in an efficiency loss to the auditor?

The risk of incorrect acceptance causes a(n)_________________________ loss for the auditor.