Student Forums CIA Part 2: Practice of Internal Auditing Section III: Performing the Engagement Can you explain the two types of sampling risks with examples?

Can you explain the two types of sampling risks with examples?

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  • #231316

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    This forum is restricted to members of the associated course(s).

    Denny Benjamin
    Participant

    Hi Brian, 

    I am referring to Para 11 of PA 2320-3 from Section 111 Information Gathering. 

    I do not understand the explanation of “Incorrect rejection” – the risk that the attribute or assertion tested is assessed as likely when in fact, it is not likely.  It appears to be similar to “incorrect acceptance”.

    It would be helpful if you could provide examples for both sampling errors.

    Thanks,

    Denny

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  • #231317

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    Denny Benjamin
    Participant

    Hi Brian, 

    Your notes below the PA reference make it clear.  Thanks.

    However, if you have some examples to provide, that would be the icing on the cake.

    Meanwhile, we can probably take out the PA reference from the notes, I took a lot of time trying to understand.

    Thanks, 

    Denny 

    #231325

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    Brian Hock
    HOCK international

    Denny,

    Thanks for the feedback. I will look at this and see if there is a way to improve the way that it is presented.

    Brian

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