Term
what two times is sampling used? 

Definition
1. study and eval of IC (attribute sampling). 2. substantive procedures (variables sampling). 


Term
sampling risk. how can it be controlled? 

Definition
nonrepresentative sample. risk that the decision made based on the sample differs from the decision that would have been made based on entire population. bigger sample, math to evaluate results, making sure each item in population has equal chance of being selected. 


Term

Definition
error in judgment or execution. incorrect conclusion is reached but the sample was representative of the population 


Term
precision (tools to evaluate sample results) 

Definition
a "range" of + and  from the sample results. allowance for sampling risk. the wider the range, the more confident, but the less precise.. 


Term
reliability (tools to eval sample results) 

Definition
confidence. higher sample size creates more confidence 


Term

Definition
when evaluating the sample results, auditors must consider the max deviation rate that might exist. = how badly could we have missed it? worst case scenario. 


Term

Definition
how badly off an account can be and still not be a material misstatement 


Term
4 types statistic and nonstatistic sampling tecniques 

Definition
1. unrestricted random selection, 2. systematic random selection, 3. haphazard selection (JSel) 4. block selection 


Term
what if an item of sample is 'lost and gone forever?' 

Definition
= breakdown of controls, expand sample 


Term
2 concerns in assessing ctrl risk 

Definition
1. risk of assessing ctrl risk too high 2. risk of assessing ctrl risk too low 


Term
risk of assessing ctrl risk too high 

Definition
decreases efficiency. we thought controls were broken, but they werent. 1. risk of underreliance 2. risk of incorrect rejection 


Term
risk of assessing ctrl risk too low 

Definition
1. risk of overreliance 2. risk of incorrect acceptance. decreases effectiveness. we thought controls were fine, but they werent 

