sampling risk


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sampling risk

[′sam·pliŋ ‚risk]
(industrial engineering)
In inspection procedure, the probability, under the sampling plan used, that acceptable material will be rejected or that unsatisfactory material will be accepted.
McGraw-Hill Dictionary of Scientific & Technical Terms, 6E, Copyright © 2003 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Auditors know that sampling risk translates to audit risk and ultimately to engagement risk.
AU-C 530.A24 and .A27 merely hint at the concept of sampling precision (calling it "sampling risk") as follows: "due to sampling risk, this projection may not be sufficient to determine an amount to be recorded" and "if the projected misstatement is greater than the auditor's expectations of misstatement used to determine the sample size, the auditor may conclude that there is an unacceptable sampling risk that the actual misstatement in the population exceeds the tolerable misstatement." The ASB audit guide suggests that statistical methods provide "numerical control of and evaluation of sampling risk" (par.
Non-sampling risk is caused by human error, whereas sampling risk is caused by chance.
A discussion of sampling risk and process capability to lay the foundation for whatever the final sampling strategy will be within the PPQ.
In this context, representative means that evaluation of the sample will result in conclusions that, subject to the limitations of sampling risk, are similar to those that would be drawn if the same procedures were applied to the entire population.
The risk of not detecting errors unasociated with sampling risk is presented in table 3.
Trennepohl, 1986, "Skewness, Sampling Risk, and the Importance of Diversification", Journal of Economics and Business, 38:77-91
Using a nonstatistical selection method that does not provide the required selection probabilities could materially misstate the sampling risk estimates provided by a formal statistical evaluation method and lead to auditor decision error.
This evaluation is complex in that it requires a consideration of known error, projected error, and sampling risk related to various segments of the audit.
For nitrate testing, this can be accomplished by assuming that post sampling risk perception is specified by the following linear relationship of prior risk perceptions and their nitrate test results:
This article will take a closer look at audit sampling risk. Specifically, we will show how the risk should be calculated and, more importantly, we will develop a tool to do so on an electronic spreadsheet.
This risk also may be referred to as the risk of overreliance or, using statistical terminology, [beta] risk (a type of sampling risk).