What scale is the most basic level of measurement, no quantitative value like gender, race or religion
Nominal Scale
What scale provides order or ranking to the data, but the intervals between the ranks are not necessarily equal. Used commonly in surveys and questionnaires, such as customer satisfaction ratings (poor, fair, good, very good, excellent)
Ordinal Scale
What scale has equal intervals between values, not no true zero point. Often used for temperature measurements (Celsius or Fahrenheit), where zero is not the absence of temperature.
Interval Scale
What scale has all the features of the interval scale, plus a true zero point. The presence of zero allows for statements of multiplicity. Used widely in science and engineering for measurements like weight, length, duration.
Ratio scale
What scale has measurements that can take on any value within a certain range. The values can include fractions or decimals. Useful in precise measurements like time, height, age or temperature.
Continuous scale
What scale is used for countable items. The values can only be distinct numbers, typically integers. Ideal for counting things like the # of employees, # of defects in a batch of products.
Discrete scale.
What type of sampling involves the use of probability theory to select a representative sample and to evaluate sample results. This includes techniques like random sampling, stratified sampling and systematic sampling.
Statistical sampling
What type of sampling do auditors use judgment to select sample items and evaluate results. This may be based on factors like materiality, risk, or the auditor’s understanding of the entity.
Non-Statistical sampling
Sample Test of Controls includes:
Attribute sampling
Substantive procedures include:
- Test of details (Substantive Test of Transactions (IS), Substantive Test of Details of Balances (BS))
- Substantive Analytical Procedures
What type of sampling is used for Substantive Test of Details?
Variable sampling (substantive sampling)
Monitary Unit Sampling (MUS, a type of variable/subsantive sampling)
In what type of sampling is the auditor generally looking for the rate of deviations from a control procedure, or the rate of occurrence which is then compared to a tolerable rate?
Test of Controls / Attribute Sampling
In what type of sampling is the auditor generally concerned with estimating the actual monetary value of errors in a population, focusing on the value of errors rather than the rate of occurrence?
Variable Sampling and Monetary Unit Sampling (substantive sampling)
What type of sampling is this? Dividing the population into subgroups and then sampling from each sub-group.
Stratified sampling
Occurrence and Existence is particularly important for Balance Sheet items, not as much IS (I think)
I think
What type of confirmation is this: the third party is asked to respond regardless of if they agree or disagree with the information?
Positive confirmations
What type of confirmation is this: the third party is asked to respond only if they disagree
Negative confirmations
True or false: Responses to confirmations must be received in writing, not verbal.
TRUE
What FV valuation approach/method is this: method uses prices and other relevant information from market transactions involving identical or comparable assets or liabilities.
Market Approach
What FV valuation approach/method is this: approach converts future amounts, such as cash flows from earnings to a single present value amount.
Income Approach
What FV valuation method reflects the amount that would be required to replace the service capacity of an asset?
Cost Approach
What FV level is this: quoted prices in active markets for identical assets or liabilities.
Level 1
What FV level is this: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 2
What FV level is this: Unobservable inputs for the asset or liability
Level 3
