(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 6 months ago

1. What is the difference between variables sampling and attribute sampling? Why is attribute sampling usually...

1. What is the difference between variables sampling and attribute sampling? Why is attribute sampling usually appropriate for internal controls audits? 3- Give an example. Why is variables sampling usually appropriate for substantive tests of financial statements accounts? Give an example.

1. How is non-sampling risk reduced? 2. In tests of controls, there are two types of...

1. How is non-sampling risk reduced? 2. In tests of controls, there are two types of sampling risk. For each type, give a short description and identify whether it affects audit efficiency or audit effectiveness. 3. In substantive tests, there are two types of sampling risk. For each type, give a short description and identify whether it affects audit efficiency or audit effectiveness. 4. Which one is of greater concern to the auditor: risk affecting audit effectiveness or risk affecting...

In this chapter, focus on audit sampling concepts for Tests of Controls and Substantive Tests of...

In this chapter, focus on audit sampling concepts for Tests of Controls and Substantive Tests of Transactions, including the following: statistical and non-statistical techniques representative samples consequence of exceptions discovered in sample testing and attribute sampling and testing

A number of controls further define treatment of risk discuss these controls

1. Describe the steps involved in a sampling operation. 2. Discuss the purpose of a sampling...

1. Describe the steps involved in a sampling operation. 2. Discuss the purpose of a sampling step in an analysis. 3. Differentiate between a bulk sample and a laboratory sample 4. Discuss the differences between an aliquot and a laboratory sample 5. What are the factors considered in choosing a representative sample?

Define the term tuple, attribute and relation. Discuss the difference between a relation and a table....

Define the term tuple, attribute and relation. Discuss the difference between a relation and a table. What constitutes union compatibility? What is a Cartesian Product operation? When must a GROUP BY clause be used in a query? Explain functional dependency between two attributes? paraphrase please, Do not copy-paste, please.

Define sampling distribution. b. Explain why the spread (variance) of a sampling distribution for estimating a...

Define sampling distribution. b. Explain why the spread (variance) of a sampling distribution for estimating a mean would be smaller than the spread (variance) of the whole population. c. Discuss what happens to the shape AND spread of a sampling distribution as sample size (n) is increased. d.Explain why it is essential that the sampling distribution be normally distributed (or t-distributed) in order to do the statistical inference procedures we use in Chapters 9, 10 and 11.

1) Why does the audit firm perform tests of controls after making its preliminary assessment of...

1) Why does the audit firm perform tests of controls after making its preliminary assessment of control risk? Discuss. (2) Could the audit firm decide not to perform tests of controls (or to reduce them to a very low level)? When and Why? Discuss. (3) Could the audit firm use analytical procedures as a method of testing of controls? Why or why not? Discuss.

Discuss and define the nature of sampling risk and non-sampling risk. **Please make sure to include...

Discuss and define the nature of sampling risk and non-sampling risk. **Please make sure to include all effects of sampling risk on substantive tests of details and on tests of internal controls.

What are the controls in total protein assay? Why do you need these control samples? Why...

What are the controls in total protein assay? Why do you need these control samples? Why do you need to dilute the unknown samples to three different dilutions? How do you make 1:10, 1:100, and 1:1000 dilutions in the experiment?

Question