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Basic Statistical Concepts
Precision Reliability and Sampling Risk
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accounting control accounts receivable achieved precision achieved upper precision allocation alpha risk analytical review approximation audit procedures audit program audit risk auditor decides auditor needs beta risk calculated chapter coefficient of variation compliance deviation compliance tests corresponding critical number DATA degree of reliance detect a material equal estimated standard deviation estimated standard error evaluation example exceed material amount material error method monetary error negative approach non-zero differences normal distribution number of observed number of occurrences observed differences one-sided reliability ft percent planned reliance population occurrence rate pps sample proportion regression estimator required sample risk of overauditing risk of unwarranted sampling distribution sampling fraction sampling units selected statistical sampling statistical tests stratified mean estimator stratum substantive procedures substantive tests tests of details threshold rate tion tolerable sampling risk total audited amount total recorded amount transactions unrestricted random sample unstratified unwarranted reliance upper bound upper precision limit zero