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Auditing: attribute sampling or variables sampling

For each of the following statements, indicate whether it is more closely related to attribute sampling or variables sampling by using the letter A (attribute) and V (variables)

___ 1. The population size affects the sample size (Variable or Attribute)
___ 2. Sampling risks include the risk of incorrect acceptance and risk of incorrect rejection.
___ 3. The population variability affects the sample size.
___ 4. The auditor's sample would include transactions or components comprising the account balance.
___ 5. Sampling risks include the risk of assessing control risk too high and the risk of assessing control risk too low.
___ 6. The auditor's sample would include potential applications of control policies and procedures.
___ 7. This type of sampling is influenced by the auditor's acceptable level of detection risk.
___ 8. Used to allow the auditor to assess risk of material misstatement

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Definitions:

Attribute sampling: used to estimate the proportion of a population that has a certain trait, such as a deviation rate, as is more commonly used in control testing. With this type of test, you are looking for "yes" or "no" type evidence. Is the signature present? Yes or no.

Variables sampling: used to estimate the dollar value of a class of transactions or account balance and is more common in substantive tests than control testing. In this type of test, you are measuring a sample and comparing the mean to a balance, using statistical inference to see the probability of the balance being correct.

_V__ 1. The population size affects the sample size (Variable or Attribute) ...

Solution Summary

Your tutorial gives you a sentence for each to explain the choice, along with a definition of each sample type. Total words of instruction is 281 and two references.

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