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Which of the following is not a term relevant to sampling for tests of details?

1) Sampling risk
2) Tolerable misstatement
3) Attribute sampling
4) Materiality

User Abayomi
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2 Answers

4 votes
Materiality is not a term relevant to sampling for tests of details.

So: 4) Materiality

(Ai generated)
User Michael Ulmann
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6 votes

Final answer:

The term 'Materiality' is not directly related to sampling for tests of details; it refers to the overall significance of financial information to decision-makers. The other options provided refer specifically to different aspects of audit sampling.

Step-by-step explanation:

The student's question pertains to concepts relevant to sampling for tests of details in audit work or statistical analysis. Among the options provided:

  1. Sampling risk is the probability that the conclusions drawn from a sample may be different from the conclusions that would be drawn from the entire population.
  2. Tolerable misstatement is the maximum error in a financial statement line item that an auditor could accept and still conclude that the financial statements are fairly presented.
  3. Attribute sampling is used in audit procedures when the auditor is interested in the occurrence or absence of certain attributes in the population.
  4. However, Materiality is a general auditing and accounting concept that pertains to the importance of an item's impact on the financial statements, but it is not a term directly associated with the mechanics of sampling for tests of details.

Therefore, the term that is not directly related to sampling for tests of details is 'Materiality'.

User Jamie Mason
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