How does Sampling Risk compare to Non-Sampling Risk?

Q: What are the characteristics of Statistical Sampling?

A: Sampling: Sampling refers to testing some part of the entire population, based on some key features…

Q: Describe basic allowance for sampling risk.

A: Sampling risk is a type of risk which a auditor may face when performing the important procedure of…

Q: Define variables sampling and understandwhen it is used in the audit.

A: Variable sampling is a sampling process used by auditors to enumerate the value of a specific…

Q: What are the characteristics of Non-Statistical Sampling?

A: Non statistical sampling is a sampling method which is not based on the principles of statistics.…

Q: Create a sample problem of an External Rate of Return.

A: External rate of return(ERR) It is the the rate of return  on a venture where any "excess” cash  is…

Q: What is Attribute Sampling?

A: Auditing:   Auditing refers to the procedure for providing independent report over the presentation…

Q: In which step of a sampling plan is nonstatistical sampling different from statistical sampling?a.…

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Q: What is the difference between covariance and correlation?

A: Co-variance: A co-variance is nothing but a descriptive measure of linear interaction intensity…

Q: Summarize the concept behind monetary-unit sampling (MUS). How does MUS use attribute-sampling…

A: As per ISA 530, "Audit Sampling" can be defined as application of audit procedure to less than 100%…

Q: Define the terms precision (allowance for sampling risk), reliability (confidence), and…

A: Precision (allowance for sampling risk) is a measure of the difference between a sampling projection…

Q: How is sampling risk controlled?

A: Sampling: Sampling allows an individual obtain the information about the population of interest in…

Q: Stratification of the population generally results in a more efficient sampling plan.   TRUE OR…

A: Auditing means the independent checking of company operation by outsider. Auditor is a qualified and…

Q: Statistical sampling cannot be used to test all control activities. TRUE OR FALSE? WHY?

A: Solution : Concept Statistical sampling               In an audit two methods of sampling can be…

Q: How does Probability Proportionate to Size (PPS) sampling compare to Classic Variables sampling?

A: Probability Proportionate to Size ( PPS):  This is a form of variable sampling. It does not use…

Q: What is the formula for Audit Sampling?

A: Audit sampling is selecting some part of population , subjecting it to some audit procedures and…

Q: What is Systematic Sampling?

A: Systematic sampling is process to select the products in random way but in a periodically manner.

Q: Distinguish between the terms sampling risk and nonsampling risk.

A: Introduction: The risk of sampling is that the conclusion based on a sample may differ from the…

Q: Can someone give an example of Mean-Variance analysis?

A: Example for mean-variance analysis:

Q: What is the meaning of “statistically significant” in relation to the null hypothesis?

A: Null hyptohesis is the assumption of no effect or no relationship between variables. The Null…

Q: What type of sampling are Control Tests?

A: Control test are done to ensure that the design and the implementation of controls is accurate and…

Q: Construct a sample problem of External Rate of Return (ERR).

A: External rate of return (ERR) or Internal rate of return (IRR) is the rate at which Present Value of…

Q: Which of the following best describes the method of determining the ULRD?a. Expected population…

A: Upper Limit Rate of Deviation (ULRD): It is a statistical measure used by the audit team to adjust…

Q: What are the characteristics of Probability Proportionate to Size (PPS) sampling?

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Q: Define monetary unit sampling and explain its importance inauditing. How does it combine the…

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Q: What is Sequential Sampling?

A: Sequential sampling: It is the sampling plan at which the initial sample is selected and the audit…

Q: Which of the following would be designed to estimate a numerical measurement of a population, such…

A: Monetary value is the value which will be received by a seller when the seller sells goods or…

Q: Which of the following pairs of selection methods could appropriately be used in statistical…

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Q: Understand how to use sequential sampling,discovery sampling, and nonstatisticalsampling in…

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Q: Which of the following components is not used in determining the upper limit on misstatements?a.…

A: Auditors generally uses Sampling Tools to find any error.

Q: Describe allowance for sampling risk (or precision)?

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Q: Non-sampling risk, and more specifically the risk of assessing control risk too low (risk of…

A: Non-sampling risk is the risk that auditors make an incorrect conclusion for any reason that is not…

Q: What is dual-direction test of controls sampling in the revenue and collection cycle?

A: Given: To explain the dual direction of controls and collection cycle as,