Question

28. several risks are inherent in evaluation of audit evidence that has the use of statistical sampking. An example of a beta or type II error failure to

A. properly define the population to be sampled.

B. draw a random sample form the population.

C. Accepting that a book value is materially misstated when the type II materially misstated.

D. Accepting that a book value is not materially misstated when the type II materially misstated.

30. A principle advantage of statistical method over nonstatistic scientific basis for determining

a. Sample size

b. Tolerable misstatement

c. Expected amount of misstatement

d. Inherent risk

31. The risk that evidence obtain from a sample is not evaluated properly by the auditor is known as

a. nonsampling risk

b. alpha risk

C. beta risk

D. sampling risk

Answer 1

28	An example of a beta or type II error failure to
	D. Accepting that a book value is not materially misstated when the type II materially misstated.
30	A principle advantage of statistical method over nonstatistic scientific basis for determining
	a. Sample size
31	The risk that evidence obtain from a sample is not evaluated properly by the auditor is known as
	a. nonsampling risk