Question 3 (5 + 5 + 4 = 14 Marks) a. Match FIVE of the 11 audit sampling terms (1-11) with the five definitions provided below in items (i-v): 1. attributes sampling 2. block sample selection 3. haphazard sample selection 4. non-statistical sampling 5. probability proportional to size 6. random selection 7. representative sample 8. sampling distribution 9. statistical sampling 10. stratified sampling 11. systematic sample selection i the use of mathematical measurement techniques to calculate formal statistical results and quantify sampling risk. ii a statistical, probabilistic method of sample evaluation that results in an estimate of the proportion of items in a population containing a characteristic of interest. iii a non-probabilistic method of sample selection in which items are chosen without regard to their size, source, or other distinguishing characteristics. iv a method of sampling in which all the elements in the total population are divided into two or more subpopulations that are independently tested and statistically measured. v a sample in which every possible combination of items in the population has an equal chance of constituting the sample. Required: State the above individual definition (i to v) is defined as which audit sampling item? (5 marks) Suggested Answer for part a: Click or tap here to enter text.

b. Describe the audit risk model and the interrelationships of its components. Which components of the audit risk model can be controlled by the auditor? (5 marks) Suggested Answer for part b: Click or tap here to enter text.

BUACC5935 Auditing and Assurance Services Semester 2 2020

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c. Outline the difference between tests of control and substantive tests and give an example of a substantive test. (4 marks)