For each term in the first column below, identify its definition (or partial definition). Each definition may be used once or not at all. # Definition (or Partial Definition) 1 A defined rate of departure from prescribed controls. Also referred to as occurrence rate or exception rate. 2 A sampling plan for locating at least 1 deviation, providing that the deviation occurs in the population with a specified frequency. 3 4 5 6 7 8 9 Also referred to as precision, a measure of the difference between a sample estimate (projection) and the tolerable rate of deviation or tolerable misstatement at a specified sampling risk. An estimate of the most likely amount of monetary misstatement in a population. The complement of the risk of incorrect acceptance. The maximum population rate of deviations from a prescribed control that the auditors will accept without modifying the planned assessment of control risk. The possibility that the assessed level of control risk based on the sample is less than the true operating effectiveness of the controls. The risk that sample results will indicate that a population is not materially misstated when, in fact, it is materially misstated. The risk that the auditors' conclusion based on a sample might be different from the conclusion they would reach if the test were applied to the entire population. Term
For each term in the first column below, identify its definition (or partial definition). Each definition may be used once or not at all. # Definition (or Partial Definition) 1 A defined rate of departure from prescribed controls. Also referred to as occurrence rate or exception rate. 2 A sampling plan for locating at least 1 deviation, providing that the deviation occurs in the population with a specified frequency. 3 4 5 6 7 8 9 Also referred to as precision, a measure of the difference between a sample estimate (projection) and the tolerable rate of deviation or tolerable misstatement at a specified sampling risk. An estimate of the most likely amount of monetary misstatement in a population. The complement of the risk of incorrect acceptance. The maximum population rate of deviations from a prescribed control that the auditors will accept without modifying the planned assessment of control risk. The possibility that the assessed level of control risk based on the sample is less than the true operating effectiveness of the controls. The risk that sample results will indicate that a population is not materially misstated when, in fact, it is materially misstated. The risk that the auditors' conclusion based on a sample might be different from the conclusion they would reach if the test were applied to the entire population. Term
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:For each term in the first column below, identify its definition (or partial definition). Each definition may be used once or not at all.
#
1
2
3
4
5
6
7
8
9
Definition (or Partial Definition)
A defined rate of departure from prescribed controls. Also referred to as occurrence rate or exception rate.
A sampling plan for locating at least 1 deviation, providing that the deviation occurs in the population with a
specified frequency.
Also referred to as precision, a measure of the difference between a sample estimate (projection) and the
tolerable rate of deviation or tolerable misstatement at a specified sampling risk.
An estimate of the most likely amount of monetary misstatement in a population.
The complement of the risk of incorrect acceptance.
The maximum population rate of deviations from a prescribed control that the auditors will accept without
modifying the planned assessment of control risk.
The possibility that the assessed level of control risk based on the sample is less than the true operating
effectiveness of the controls.
The risk that sample results will indicate that a population is not materially misstated when, in fact, it is
materially misstated.
The risk that the auditors' conclusion based on a sample might be different from the conclusion they would
reach if the test were applied to the entire population.
Term
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