Solved

Match the Five Definitions Provided Below with the Correct Term

Question 145

Matching

Match the five definitions provided below with the correct term.

Premises:

Responses:

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 populations items, and also calculates sampling risk

point estimate

the risk that the auditor is willing to take of concluding a balance is materially misstated when it is, in fact, fairly stated

mean-per-unit estimation

a method of sampling in which all the elements in the total population are divided into two or more subpopulations that are independently tested and statistically measured

variable sampling

a method of projecting from the sample to the population to estimate the population misstatement, commonly by assuming that misstatements in the unaudited population are proportional to the misstatements found in the sample

allowable risk of incorrect rejection

a method of variables sampling in which the auditor estimates the population misstatement by multiplying the portion of sample dollars misstated by the total recorded population book value, and also calculates sampling risk

probability-proportional-to-size sample selection

monetary-unit sampling

ratio estimation

statistical inferences

stratified sampling

misstatement bounds

allowable risk of incorrect acceptance

difference estimation