Match Six of the Terms (A-L)with the Definitions Provided Below
Match six of the terms (a-l)with the definitions provided below (1-6):
a.Acceptable risk of incorrect acceptance
b.Acceptable risk of incorrect rejection
e.Monetary unit sampling
h.Probability proportional to size sample selection
________ 1.Conclusions drawn from sample results based on knowledge of sampling distributions.
________ 2.Sampling techniques for tests of details that use the statistical inference processes.
________ 3.The risk that the auditor is willing to take of concluding a balance is materially misstated when it is,in fact,fairly stated.
________ 4.A statistical sampling method that provides upper and lower misstatement bounds expressed in monetary amounts.
________ 5.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 population items and also calculates sampling risk.
________ 6.The risk that the auditor is willing to take of accepting a balance as correct when the true misstatement in the balance is greater than tolerable misstatement.
Acceptable risk of incorrect rejection is the statistical risk that the auditor has concluded that a population is materially misstated when it is not.
Difference estimation frequently results in smaller sample sizes than any other variables sampling method.
An important statistic to consider when using a statistical sampling audit plan is the population variability.The population variability is measured by the:
A) sample mean.
B) standard deviation.
C) standard error of the sample mean.
D) estimated population total minus the actual population.