Formulas

Question 1

Evaluating sample results for attribute sampling

Answer 1

UDR (Sample deviation rate+allowance for sampling risk) more than Tolerable risk-bad, don’t rely on control

Question 2

Statistical sampling method facts

Answer 2

1. SSM allows a greater quantification of risk and reliability than Non-statistical sampling
2. SSM requires the use of mathematical formulas and tables

Question 3

Tolerable deviation rate

Answer 3

Used in drawing conclusions about the operation of internal controls