Sampling and IT
The Sampling Risk Pair
Attribute for controls, variables for balances, and only sampling risk moves with sample size.
How the exam words it
- -The stem distinguishes sampling risk from nonsampling risk.
- -It picks attribute sampling (controls) versus variables sampling (balances).
- -It relates the tolerable rate or confidence level to sample size.
- -It compares an upper deviation limit or projected misstatement to a threshold.
The playbook
- 1Only sampling risk falls as the sample grows, nonsampling risk comes from human error.
- 2Attribute sampling tests control deviation rates, variables sampling estimates dollar amounts.
- 3A higher tolerable rate means a smaller sample, and if the upper deviation limit exceeds the tolerable rate, the control cannot be relied on.
The trap
Thinking a bigger sample reduces nonsampling risk, or mixing up attribute and variables sampling. Only sampling risk shrinks with size.
How the exam varies it
The same pattern, re-skinned along these axes:
Attribute (controls) versus variables (substantive)Sampling versus nonsampling riskTolerable rate, confidence level, or sample-result interpretation
Drill this pattern
8 questions of The Sampling Risk Pair from across the AUD topics. Clear it by getting 5 right with a streak of 3.