Term
Allowance for Sampling Risk 

Definition
The uncertainty that results from sampling; the difference between the expected mean of the population and the tolerable deviation or misstatement. 


Term

Definition
Sampling used to estimate the proportion of a population that posesses a specified characteristic. 


Term

Definition
The selection and evaluation of less than 100 percent of the population of audit relevance such that the auditor expects the items selected to be representative of the population and, thus, likely to provide a reasonable basis for conclusions about the population. 


Term
Classical Variables Sampling 

Definition
The use of normal distribution theory to estimate the dollar amount of misstatement for a class of transactions or an account balance. 


Term

Definition
The probability that the true but unknown measure of the characteristic of interest is within specified limits. 


Term
Expected Population Deviation Rate 

Definition
The deviation rate that the auditor expects to exist in the population. 


Term

Definition
Attributesampling techniques used to estimate the dollar amount of misstatement for a class of transactions or an account balance. 


Term

Definition
The risk that the auditor reaches an erroneous conclusion for any reason not related to sampling risk (e.g., judgment error, inappropriate procedures, failing to detect a misstatement when applying an audit procedure). 


Term

Definition
Audit sampling that relies on the auditor's judgment to determine sample size (typically of comparable size to a statistically based sampling approach), select the sample, and/or evaluate the results for the purpose of reaching a conclusion about the population. 


Term

Definition
The evaluation of the sample will result in conclusions that are similar to those that would be drawn if the same procedures were applied to the entire population. 


Term
Risk of Incorrect Acceptance 

Definition
The risk that the sample supports the conclusion that the control is operating effectively when it is not or that the recorded account balance is not materially misstated when it is materially misstated. 


Term
Risk of Incorrect Rejection 

Definition
The risk that the sample supports the conclusion that the control is not operating effectively when it actually is or that the recorded account balance is materially misstated when it is not materially misstated. 


Term

Definition
The possibility that the sample drawn is not representative of the population and that, as a result, the auditor reaches an incorrect conclusion about the reliability of the control, the account balance, or class of transactions based on the sample. 


Term

Definition
The individual items constituting a population being sampled. 


Term

Definition
Sampling that uses the laws of probability to select and evaluate the results of an audit sample, thereby permitting the auditor to quantify the sampling risk for the purpose of reaching a conclusion about the population. 


Term

Definition
The maximum deviation rate from a prescribed control that the auditor is willing to accept without altering the planned assessed level of control risk. 

