Untitled Quiz

This pertains to the possibility that the auditor concludes that controls are less effective than they actually are.

• Beta error

• Alpha error

• Risk of incorrect acceptance

• Alpha risk

Auditors control sampling risk by:

• Decrease sample size

• Increase sample size

• Appropriate sample methods

• None

Involves the application of audit procedures to less than 100% of population

Applied through calculation of sampling interval.

• Haphazard

• Systematic

• Random

• Block

Associated with human type error that will lead to erroneous conclusion

• Sampling risk

• Non statistical

• Non sampling risk

• Satistical

Refers to the individual item constituting population

Types of sampling risk involves

• As a Test of controls

• As test of mistatements

• Test of operation

• As a test of details

This refers to the auditors judgment that a material misstatement does not exist when in fact it does.

• Risk of incorrect rejection

• Alpha risk

• Risk of incorrect acceptance

• Type 1 error

Alpha risk and alpha error affects

• Audit effectiveness

• Efficiency

• Objectivity

• Timeliness

Risk of assesing risk too low and risk of incorrect acceptance affects

• Reliability

• Effectiveness

• Efficiency

• Understandability