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Unformatted text preview: Type II, beta risk ) – in a test of internal controls, it is the risk that the sample supports a conclusion that the control is operating effectively when, in fact, it is not operating effectively. Sample Unrepresentative. Why? Sampling error How do you reduce sampling error? -increase sample size -appropriate selection method (e.g., Dewey wins by landslide) Non-sampling auditor error the experience and competence of the auditor affect the persuasiveness of information just as the competence and trustworthiness of the client’s employees affect the company’s internal control. - ineffective audit procedures - failure to recognize errors...
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This note was uploaded on 10/05/2011 for the course ACG 5637 taught by Professor Monikacaushoulli during the Fall '08 term at University of Florida.
- Fall '08