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

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: When is Attribute sampling used?

A: Attributes sampling is a statistical sampling method used to estimate the rate of control procedure…

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: What is Sampling Risk?

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Q: Which one of the following measures is relevant for assessing exposure to systematic risk?

A: Systematic Risk: It refers to the risk caused by factors that are not in the control of an…

Q: Monetary Unit and Classical Variables Sampling. Indicate whether each of the following…

A: Definition:

Q: The likelihood that an identified precision interval contains the true (but unknown) population…

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Q: What is Non-Sampling Risk?

A: Sampling: It is a procedure used by the auditor to analyze the predetermined number of observations…

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

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Q: What factors are considered in determining the sample size in a nonstatistical samplingapplication?

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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: In stratified random sampling, the population is first divided up into mutually exclusive and…

A: True, In stratified random sampling, the population is first divided up into mutually exclusive and…

Q: How does Block Sampling compare to other sampling methods?

A: Block sampling is a sampling technique in auditing. Under this method, a series of items is selected…

Q: What functions are used in conjunction with Classic Variable Sampling?

A: Classic variable sampling is a testing for a dollar amount. In this sampling, value in sample gives…

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: How does Sampling Risk compare to Non-Sampling Risk?

A: Risk:   It is a probability of the financial statements being materially incorrect even though the…

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: What is Audit Sampling?

A: Audit sampling is the use of an audit procedure which says that selection of some sample items from…

Q: What is the relationship between sample size and (a) sampling risk, (b) tolerable rate of…

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Q: The standard deviation of.alt=”f$ar{X},f$ “> is usually called the A.standard error of the sample…

A: B.randomized standard error

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: What is sequential sampling? What are its advantages and disadvantages?

A: In this type of sampling, sequence of sample is taken from a group.In this method of sampling,…

Q: Probability samples versus nonprobability samples; also briefly define the types of valid…

A: Solution- Probability sampling- 1- probability sampling, respondents are randomly selected to take…

Q: The interpretation of the ULRD in an attributes sampling application isa. The estimated rate of…

A: The interpretation of the ULRD in an attributes sampling application is the estimated rate 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: 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 pairs of selection methods could appropriately be used in statistical…

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Q: What is Discovery Sampling?

A: Discovery sampling can be used by the audit team as follows: Go to the AICPA sampling tables…

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

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Q: Identify differences between the determination of sample size under classical variables samplingand…

A: Financial unit inspecting (MUS) is a factual examining strategy that is utilized to decide whether…