In: Accounting
Key Terms Match the items A – X below to the related definition. Some items may be used once, more than once or not at all.
A |
Block sample selection |
G |
Sample exception rate (SER) |
M |
Computed upper exception rate (CUER) |
S |
Haphazard sample selection |
B |
Attribute |
H |
Nonstatistical sampling |
N |
Sampling risk |
T |
Random Error Rate |
C |
Exception rate |
I |
Sample Distribution |
O |
Audit sampling |
U |
Random sample |
D |
Tolerable exception rate (TER) |
J |
Nonsampling risk |
P |
Statistical sampling |
V |
Planned Rate |
E |
Initial sample size |
K |
Attributes sampling |
Q |
ARO |
W |
Representative sample |
F |
Probabilistic sample selection |
L |
Nonprobabilistic sample selection |
R |
Estimated population exception rate (EPER) |
X |
Acceptable risk of overreliance (ARO) |
The upper limit of the probable population exception rate; the highest exception rate in the population at a given ARO |
|
A statistical, probabilistic method of sample evaluation that results in an estimate of the proportion of items in a population containing a characteristic or attribute of interest |
|
Sample size determined by professional judgment (nonstatistical sampling) or by statistical tables (attributes sampling) |
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A nonprobabilistic method of sample selection in which items are chosen without regard to their size, source, or other distinguishing characteristics |
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The percent of items in a population that include exceptions in prescribed controls or monetary correctness |
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The risk that the auditor is willing to take of accepting a control as effective or a rate of monetary misstatements as tolerable when the true population exception rate is greater than the tolerable exception rate |
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Exception rate the auditor expects to find in the population before testing begins |
|
The characteristic being tested for in the population |
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A nonprobabilistic method of sample selection in which items are selected in measured sequences |
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A sampling procedure that does not permit the numerical measurement of the sampling risk |
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Testing less than 100 per cent of a population for the purpose of making inferences about that population |
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A sample in which every possible combination of elements in the population has an equal chance of constituting the sample |
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The risk that the auditor fails to identify existing exceptions in the sample; nonsampling risk (nonsampling error) is caused by failure to recognize exceptions and by inappropriate or ineffective audit procedures |
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A method of sample selection in which the auditor uses professional judgment to select items from the population |
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A method of selecting a sample such that each population item has a known probability of being included in the sample and the sample is selected by a random process |
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A sample with characteristics the same as those of the population |
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The use of mathematical measurement techniques to calculate formal statistical results and quantify sampling risk |
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The exception rate that the auditor will permit in the population and still be willing to conclude the control is operating effectively |
The upper limit of the probable population exception rate; the highest exception rate in the population at a given ARO | Computed upper exception rate (CUER) | M |
A statistical, probabilistic method of sample evaluation that results in an estimate of the proportion of items in a population containing a characteristic or attribute of interest | Attributes sampling | K |
Sample size determined by professional judgment (nonstatistical sampling) or by statistical tables (attributes sampling) | initial sample size | E |
A nonprobabilistic method of sample selection in which items are chosen without regard to their size, source, or other distinguishing characteristics | haphazard sample selection | S |
The percent of items in a population that include exceptions in prescribed controls or monetary correctness | exception rate | C |
The risk that the auditor is willing to take of accepting a control as effective or a rate of monetary misstatements as tolerable when the true population exception rate is greater than the tolerable exception rate | Acceptable risk of overreliance (ARO) | X |
Exception rate the auditor expects to find in the population before testing begins | estimated population exception rate (EPER) | R |
The characteristic being tested for in the population | attribute | B |
A nonprobabilistic method of sample selection in which items are selected in measured sequences | Block Sample Selection | A |
A sampling procedure that does not permit the numerical measurement of the sampling risk | non statistical sampling | H |
Testing less than 100 per cent of a population for the purpose of making inferences about that population | Audit Sampling | |
A sample in which every possible combination of elements in the population has an equal chance of constituting the sample | random sample | U |
The risk that the auditor fails to identify existing exceptions in the sample; nonsampling risk (nonsampling error) is caused by failure to recognize exceptions and by inappropriate or ineffective audit procedures | non sampling risk | J |
A method of sample selection in which the auditor uses professional judgment to select items from the population | non-probabilistic sample selection | L |
A method of selecting a sample such that each population item has a known probability of being included in the sample and the sample is selected by a random process | probabilistic sample selection | F |
A sample with characteristics the same as those of the population | representative sample | W |
The use of mathematical measurement techniques to calculate formal statistical results and quantify sampling risk | statistical sampling | P |
The exception rate that the auditor will permit in the population and still be willing to conclude the control is operating effectively | tolerable exception rate (TER) | D |