The Risk of _______________________ Is the Likelihood That the Auditor's

question 108

Short Answer

The risk of _______________________ is the likelihood that the auditor's sample indicates that important controls are functioning effectively when,in fact,the true (but unknown)population deviation rate exceeds the tolerable rate of deviation.

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Definitions:

Predictive Validity

The degree to which a test or measure predicts future performance or outcomes.

Predictive Validity

The extent to which a score on a scale or test predicts future performance on a related task or identifies a particular outcome.

GRE Scores

Scores from the Graduate Record Examination, a standardized test used for admission to many graduate schools.

IQ Scores

Numerical measures of a person's intelligence relative to that of others, based on standardized tests.