1. Match the correct definition with the following terms:

1. Attributes sampling ________________
2. Stratification ________________
3. Deviation rate ________________
4. Tolerable deviation rate ________________
5. Assessed level of control risk ________________
6. Allowance for sampling risk ________________
7. Sampling error ________________

1. The maximum population rate of exceptions from a prescribed control that the auditor will accept without modifying the planned assessment of control risk.
2. Aspects of audit risk not due to sampling.
3. An interval around the sample results in which the true population characteristic is expected to lie.
4. A sampling plan enabling the auditors to estimate the rate of deviation (occurrence) in a population.
5. Dividing a population into two or more relatively homogeneous subgroups.
6. Difference between the actual rate or amount in the population and that of the sample.
7. Estimate of the maximum monetary misstatement that may exist in an account balance without causing the financial statements to be materially misstated.
8. Advance estimate of a deviation rate.
9. A defined rate of departure from prescribed controls.
10. The level of risk used by the auditors in determining the acceptable detection risk for a financial statement assertion.