Match Six of the Terms (A-L) with the Definitions Provided

question 22

Short Answer

Match six of the terms (a-l) with the definitions provided below (1-6):
a. Acceptable risk of incorrect acceptance
b. Acceptable risk of incorrect rejection
c. Difference estimation
d. Misstatement bounds
e. Monetary-unit sampling
f. Mean-per-unit estimation
g. Point estimate
h. Probability proportional to size sample selection
i. Ratio estimation
j. Statistical inferences
k. Stratified sampling
l. Variable sampling
________ 1. Conclusions drawn from sample results based on knowledge of sampling distributions.
________ 2. Sampling techniques for tests of details that use the statistical inference processes.
________ 3. The risk that the auditor is willing to take of concluding a balance is materially misstated when it is, in fact, fairly stated.
________ 4. A statistical sampling method that provides upper and lower misstatement bounds expressed in monetary amounts.
________ 5. A method of variables sampling in which the auditor estimates the population misstatement by multiplying the average misstatement in the sample by the total number of population items and also calculates sampling risk.
________ 6. The risk that the auditor is willing to take of accepting a balance as correct when the true misstatement in the balance is greater than tolerable misstatement.

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Definitions:

Diethyl Ether

A highly volatile, flammable liquid used primarily as a solvent and as an anesthetic historically.

Pentanone

A class of ketones with a five-carbon backbone, including molecules such as pentan-2-one, characterized by their distinct functional group.

Butanone

A colorless, highly flammable liquid solvent with a sharp minty smell, commonly used in coatings and adhesives.

Hexanone

Hexanone, often referred to as hexone, is an organic compound with a six-carbon chain terminating in a ketone functional group, known for its role in chemical synthesis and industry.