Reminder – I do not allow direct quotes in student’s work in this class. You need to paraphrase and cite your outside sources. “Outside sources” do not include the text and so you don’t need to cite it. 1) Confidence level and acceptable audit risk (AAR) in the audit risk model are conceptually very similar. In addition, Tolerable Exception Rate (TER) and materiality in the risk model are conceptually very similar. Explain each of these statements and discuss why the two comparisons are similar.Hint: I want you to get behind these terms and think about what they mean and how they are used to determine how much evidence auditors gather. 2) How does non-statistical sampling differ from statistical sampling and when might an auditor choose one over the other?Hint: There are only two key differences between statistical and non-statistical sampling. Your answer should cover what those two differences are and the advantages and disadvantages of choosing one over the others. Give examples to illustrate your points. Also, the text missed a common type of non-statistical sample selection called judgmental sampling. In judgmental sampling, the auditor select items to test based on features of the items. For example, selecting vendors that they know have complex transactions to test purchasing controls. Understanding judgmental sample selection may give you more examples to support your answer.
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