Indicate the Type of Sampling Risk Involved in Each of the Following

question 83

Short Answer

Indicate the type of sampling risk involved in each of the following situations.Use the following in your answer:
A.Risk of under reliance
B.Risk of over reliance
C.Risk of incorrect acceptance
D.Risk of incorrect rejection
N.No risk
1___.An auditor determined the adjusted sample rate of deviation to be higher than the tolerable rate of deviation.However,the rate of deviation in the population is less than the tolerable rate of deviation.2___.While examining accounts payable,the sample results supported the auditor's conclusion that the accounts payable balance was correctly stated.However,the balance was materially misstated.3___.An audit team used attributes sampling to evaluate a client's internal control policies regarding the physical security of inventory and determined they would need to reduce their planned reliance on internal controls.This decision is consistent with the results of evaluating the entire population.4___.An auditor concluded that the upper limit on misstatement was less than the tolerable misstatement,but in reality the actual misstatement was greater than the tolerable misstatement.5___.While performing an evaluation of internal controls,an auditor determined that internal controls were operating effectively.However,if the entire population had been evaluated,the auditor would have increased control risk.6___.An auditor concluded that the inventory account balance was materially misstated based on the results of variables sampling.However,the balance was not materially misstated.

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Definitions:

Eight Types of Intelligence

Refers to Howard Gardner's theory of multiple intelligences, which posits that individuals have different kinds of intelligences, including logical-mathematical, linguistic, spatial, musical, bodily-kinesthetic, interpersonal, intrapersonal, and naturalistic.

Gardner

Howard Gardner, an American developmental psychologist best known for his theory of multiple intelligences, suggesting that there are several distinct forms of intelligence.

Gifted

Individuals, often children, who exhibit a higher than average ability or potential in one or more domains of mental capability.

Developmental Quotient

A measure of a young child's development in various domains, relative to a normative population.