Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN: 9781337619455
Author: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher: Cengage Learning
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Question
Chapter 8, Problem 13RQSC
To determine
Introduction:
Requirement 1
To determine the effect on sample size of increasing of the sampling risk.
To determine
Introduction:Sample size is the basic unit for the audit. Tolerable limit is set by the auditor before auditing to control the risk.
Requirement 2
To determine the effect on sample size of increasing of tolerable rate of deviation.
To determine
Introduction:The basic unit of audit is sample size. The population deviation rate is the limit of the auditor to control the risk without altering the plan.
Requirement 3
To determine the effect on sample size of increasing of population deviation rate.
To determine
Introduction:Sample size is decided by the auditor to minimize the risk level.
Requirement 4
To determine the effect on sample size of increasing of population size.
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How does Probability Proportionate to Size (PPS) sampling compare to Classic Variables sampling?
Chapter 8 Solutions
Auditing: A Risk Based-Approach (MindTap Course List)
Ch. 8 - Prob. 1CYBKCh. 8 - Prob. 2CYBKCh. 8 - Prob. 3CYBKCh. 8 - Prob. 4CYBKCh. 8 - Prob. 5CYBKCh. 8 - Prob. 6CYBKCh. 8 - Prob. 7CYBKCh. 8 - Prob. 8CYBKCh. 8 - Prob. 9CYBKCh. 8 - Prob. 10CYBK
Ch. 8 - Prob. 11CYBKCh. 8 - Prob. 12CYBKCh. 8 - Prob. 13CYBKCh. 8 - Prob. 14CYBKCh. 8 - Prob. 15CYBKCh. 8 - Prob. 16CYBKCh. 8 - Prob. 17CYBKCh. 8 - Prob. 18CYBKCh. 8 - Refer to Exhibit 8.6. Assume a 5% risk of...Ch. 8 - Prob. 21CYBKCh. 8 - Prob. 22CYBKCh. 8 - Prob. 23CYBKCh. 8 - Prob. 24CYBKCh. 8 - Prob. 25CYBKCh. 8 - Prob. 26CYBKCh. 8 - Prob. 27CYBKCh. 8 - Prob. 28CYBKCh. 8 - Prob. 29CYBKCh. 8 - Prob. 30CYBKCh. 8 - Prob. 31CYBKCh. 8 - Prob. 32CYBKCh. 8 - Prob. 33CYBKCh. 8 - Prob. 34CYBKCh. 8 - Prob. 35CYBKCh. 8 - Prob. 36CYBKCh. 8 - Prob. 37CYBKCh. 8 - Prob. 38CYBKCh. 8 - Prob. 39CYBKCh. 8 - Prob. 1RQSCCh. 8 - Prob. 3RQSCCh. 8 - Prob. 4RQSCCh. 8 - Prob. 5RQSCCh. 8 - Prob. 6RQSCCh. 8 - Prob. 7RQSCCh. 8 - Prob. 8RQSCCh. 8 - Prob. 9RQSCCh. 8 - Prob. 10RQSCCh. 8 - Prob. 11RQSCCh. 8 - Prob. 12RQSCCh. 8 - Prob. 13RQSCCh. 8 - Prob. 14RQSCCh. 8 - Prob. 15RQSCCh. 8 - Prob. 16RQSCCh. 8 - Prob. 17RQSCCh. 8 - Prob. 18RQSCCh. 8 - Prob. 19RQSCCh. 8 - What is stratification? Distinguish between...Ch. 8 - Prob. 21RQSCCh. 8 - Prob. 22RQSCCh. 8 - Prob. 23RQSCCh. 8 - Prob. 24RQSCCh. 8 - Prob. 25RQSCCh. 8 - Prob. 26RQSCCh. 8 - Prob. 27RQSCCh. 8 - Prob. 28RQSCCh. 8 - Prob. 29RQSCCh. 8 - Prob. 30RQSCCh. 8 - Prob. 31RQSCCh. 8 - Prob. 32RQSCCh. 8 - Prob. 33RQSCCh. 8 - Prob. 36RQSCCh. 8 - Prob. 37RQSC
Knowledge Booster
Similar questions
- What are the characteristics of Probability Proportionate to Size (PPS) sampling?arrow_forward1. Which of the following would be designed to estimate a numerical measurement of a population, such as monetary value?* A. Sampling for variables B. Sampling for attributes C. Sequential sampling D. Discovery sampling E. None of themarrow_forwardWhich measure of central tendency is best used for categorical data? a) Mean b) Median c) Mode d) Standard Deviationarrow_forward
- Which of the following statistical techniques are used to test controls? Mean-per-unit sampling. Attribute sampling. Difference estimation. Ratio estimation.arrow_forwardWhat is the primary use of a p-value in statistics? a) To measure the central tendency b) To assess the strength of evidence against the null hypothesis c) To calculate the mean d) To measure the spread of dataarrow_forwardThe interpretation of the ULRD in an attributes sampling application isa. The estimated rate of deviation in the population with probability equal to the risk ofoverreliance that the population deviation rate is higher.b. The estimated rate of deviation in the population with probability equal to the risk ofoverreliance that the actual rate of deviation is lower.c. The estimated rate of deviation in the population with certainty that the actual rate ofdeviation is lower.d. The estimated rate of deviation in the population with certainty that the actual rate ofdeviation is higher.arrow_forward
- Construct a sample problem of External Rate of Return (ERR).arrow_forwardWhich one of the following measures is relevant for assessing exposure to systematic risk? A. variance B. beta C. standard deviation D. theta E. alphaarrow_forwardA principal advantage of statistical methods of attribute sampling over nonstatistical methods is that they provide a scientific basis for planning the A. risk of overreliance B. tolerable rate C. expected population deviation rate D. Sample sizearrow_forward
- Which of the following combinations results in an increase in sample size in an attribute sample? a. Allowable Risk of Overreliance Tolerable Rate Expected Population Deviation Rate Decrease Decrease Increase b. Allowable Risk of Overreliance Tolerable Rate Expected Population Deviation Rate Decrease Increase Decrease c. Allowable Risk of Overreliance Tolerable Rate Expected Population Deviation Rate Increase Increase Decrease d. Allowable Risk of Overreliance Tolerable Rate Expected Population Deviation Rate Increase Increase Increase e. Allowable Risk of Overreliance Tolerable Rate Expected Population Deviation Rate Increase Decrease Increasearrow_forwardDifference estimation is a classical variables sampling technique that projects the sample average to the total population by multiplying the sample average by the number of items in the population. True Falsearrow_forwardHow does Sampling Risk compare to Non-Sampling Risk?arrow_forward
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