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Match Six of the Terms (A-L)with the Definitions Provided Below

Question 59

Matching

Match six of the terms (a-l)with the definitions provided below (1-6):

Premises:

Responses:

Sampling techniques for tests of details that use the statistical inference processes.

Statistical inferences

A statistical sampling method that provides upper and lower misstatement bounds expressed in monetary amounts.

Acceptable risk of incorrect rejection

The risk that the auditor is willing to take of concluding a balance is materially misstated when it is fairly stated.

Ratio estimation

Conclusions drawn from sample results based on knowledge of sampling distributions.

Stratified sampling

The risk that the auditor is willing to take of accepting a balance as correct when the true misstatement in the balance is greater than tolerable misstatement.

Acceptable risk of incorrect acceptance

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 population items and also calculates sampling risk.

Difference estimation

Variable sampling

Mean-per-unit estimation

Monetary unit sampling

Probability proportional to size sample selection

Point estimate

Misstatement bounds

Premises:

Sampling techniques for tests of details that use the statistical inference processes.

A statistical sampling method that provides upper and lower misstatement bounds expressed in monetary amounts.

The risk that the auditor is willing to take of concluding a balance is materially misstated when it is fairly stated.

Conclusions drawn from sample results based on knowledge of sampling distributions.

The risk that the auditor is willing to take of accepting a balance as correct when the true misstatement in the balance is greater than tolerable misstatement.

Responses:

Statistical inferences

Acceptable risk of incorrect rejection

Ratio estimation

Stratified sampling

Acceptable risk of incorrect acceptance

Difference estimation

Variable sampling

Mean-per-unit estimation

Monetary unit sampling

Probability proportional to size sample selection

Point estimate

Misstatement bounds

Correct Answer:

Premises:

Responses:

Statistical inferences

Acceptable risk of incorrect rejection

Ratio estimation

Stratified sampling

Acceptable risk of incorrect acceptance

Difference estimation

Variable sampling

Mean-per-unit estimation

Monetary unit sampling

Probability proportional to size sample selection

Point estimate

Misstatement bounds