Solved

Match Six of the Terms (A-L) with the Definitions Provided

Question 130

Question 130

Matching

Match six of the terms (a-l) with the definitions provided below (1-6).

Premises:

Responses:

the risk that the auditor is willing to take of accepting a balance as correct when the true misstatement in the balance exceeds the tolerable misstatement

point estimate

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

difference estimation

the risk that the auditor is willing to take of rejecting a balance as incorrect when it is not misstated by a material amount

misstatement bounds

conclusions drawn from sample results based on knowledge of sampling distributions

ratio estimation

a statistical sampling method that provides misstatement bounds expressed in monetary amounts

statistical inferences

sampling techniques for tests of details of balances that use the statistical inference processes

stratified sampling

acceptable risk of incorrect acceptance

variable sampling

monetary unit sampling

acceptable risk of incorrect rejection

mean-per-unit estimation

probability proportional to size sample selection

Premises:

the risk that the auditor is willing to take of accepting a balance as correct when the true misstatement in the balance exceeds the tolerable misstatement

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

the risk that the auditor is willing to take of rejecting a balance as incorrect when it is not misstated by a material amount

conclusions drawn from sample results based on knowledge of sampling distributions

a statistical sampling method that provides misstatement bounds expressed in monetary amounts

sampling techniques for tests of details of balances that use the statistical inference processes

Responses:

point estimate

difference estimation

misstatement bounds

ratio estimation

statistical inferences

stratified sampling

acceptable risk of incorrect acceptance

variable sampling

monetary unit sampling

acceptable risk of incorrect rejection

mean-per-unit estimation

probability proportional to size sample selection

Correct Answer:

Premises:

Responses:

point estimate

difference estimation

misstatement bounds

ratio estimation

statistical inferences

stratified sampling

acceptable risk of incorrect acceptance

variable sampling

monetary unit sampling

acceptable risk of incorrect rejection

mean-per-unit estimation

probability proportional to size sample selection

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