(1) Define attribute sampling and discuss why tests of controls tend to be attribute samples. (2)...

(1) Define attribute sampling and discuss why tests of controls tend to be attribute samples.

(2) define sampling risk and non-sampling risk as well as differentiate between these concepts.

(3) define each of the following parameters used in calculating sample size and explain how changes in each parameter affect sample size.

a. Confidence level

b. Tolerable deviation rate

c. Expected deviation rate

(4) What are some factors that auditors use in setting their confidence level?

Expert Solution

And 2) Sampling risk is the risk that the auditors conclusion based on sample might be different from the conclusion they would reach if they examined every item in the entire population.. Non sampling risk are reduced to low levels through effective planning and supervision of audit engagements and implementation of appropriately designed quality control procedures. 1) Attribute sampling is a statistical tool used in audit procedures to analyse the charaterstics of a given population. Attribute sampling is used to test whether a company internal controls are being followed. 3 ) Confidence level it is percentage of all possible samples that can be expected to. Includes the true population parameter. A 95 percent confidence level means include true population parameter. 3) the tolerable deviation rate is the largest percentage variance expected in auditorbwill accept in order to rely upon a specific control.

ekkarill92 answered 7 months ago

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