Substantive Evidence

Question 1

Detection risk split up

Answer 1

• OSR = other substantive procedure risk (non sampling risk)
• SSR = substantive sampling risk

Question 2

OSR

Answer 2

other substantive procedure risks, human factor and inherent limitations in audit procedures

Question 3

SSR

Answer 3

substantive sampling risk, risk that the auditor cannot select every transaction (more related to statistical sampling)

Question 4

examples OSR

Answer 4

• physical examination
• external confirmation
• internal documentation
• reperformance

Question 5

statistical sampling

Answer 5

• random selection of sample
• probability theory evaluate results

Question 6

judgmental sampling

Answer 6

• does not require random selection of sample
• professional judgment evaluate results

Question 7

non-sampling risk

Answer 7

• inherent limitations in OSP
• auditor selects ineffective OSP
• auditor applies OSP ineffectively
• audit evaluates results OSP incorrectly

Question 8

sampling risk

Answer 8

• Beta risk: risk that the population does not contain a significant misstatement when in fact it does (type 2)
• alfa risk: risk that the population does contain a significant misstatement when if fact it does not (type 1)