Sampling and Audit Control Evaluation

This flashcard set covers key concepts from the lecture on sampling and audit control evaluations.

Sampling

The process of testing less than 100% of the population in auditing.

Representative Sample

A sample that accurately reflects the population from which it is drawn.

Sampling Risk

The risk that the sample selected is not representative of the population.

Non-sampling Risk

The risk that an auditor's conclusion is incorrect for reasons not related to sampling.

Statistical Sampling

Determining sample size using statistical methods.

Non-statistical Sampling

Determining sample size based on auditor judgment.

Tolerable Exception Rate (TER)

The maximum rate of deviation from a control that the auditor is willing to accept.

Sample Exception Rate (SER)

The rate of deviations identified in the selected sample.

Computed Upper Exception Rate (CUER)

The auditor's estimate of the largest possible exception rate in the population based on sample results.

Attribute Sampling

A type of sampling that tests for the presence or absence of a specific characteristic.

Controlled Deviation

An exception found in control tests.

Monetary Misstatement

An exception found in substantive tests of transactions.

Auditor Judgment

The professional judgment used by auditors in deciding sample sizes and interpreting results.

Allowance for Sampling Risk

The measurement of how much variance is acceptable when estimating the control's effectiveness.

Professional Skepticism

An attitude that includes a questioning mind and critical assessment of audit evidence.

Exception Conditions

Conditions that indicate a deviation from the established standards or controls.

Auditing Procedures

The steps taken by auditors to conduct tests on selected items.

Qualitative Aspects

The evaluation of the nature and importance of exceptions found in audit testing.

Populations

The complete set of items that an auditor intends to evaluate during an audit.