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Key Terms Match the items A X below to the related definition. Some items may be used once, more than once or not at all.

A	Block sample selection	G	Sample exception rate (SER)	M	Computed upper exception rate (CUER)	S	Haphazard sample selection
B	Attribute	H	Nonstatistical sampling	N	Sampling risk	T	Random Error Rate
C	Exception rate	I	Sample Distribution	O	Audit sampling	U	Random sample
D	Tolerable exception rate (TER)	J	Nonsampling risk	P	Statistical sampling	V	Planned Rate
E	Initial sample size	K	Attributes sampling	Q	ARO	W	Representative sample
F	Probabilistic sample selection	L	Nonprobabilistic sample selection	R	Estimated population exception rate (EPER)	X	Acceptable risk of overreliance (ARO)

The upper limit of the probable population exception rate; the highest exception rate in the population at a given ARO
A statistical, probabilistic method of sample evaluation that results in an estimate of the proportion of items in a population containing a characteristic or attribute of interest
Sample size determined by professional judgment (nonstatistical sampling) or by statistical tables (attributes sampling)
A nonprobabilistic method of sample selection in which items are chosen without regard to their size, source, or other distinguishing characteristics
The percent of items in a population that include exceptions in prescribed controls or monetary correctness
The risk that the auditor is willing to take of accepting a control as effective or a rate of monetary misstatements as tolerable when the true population exception rate is greater than the tolerable exception rate
Exception rate the auditor expects to find in the population before testing begins
The characteristic being tested for in the population
A nonprobabilistic method of sample selection in which items are selected in measured sequences
A sampling procedure that does not permit the numerical measurement of the sampling risk
Testing less than 100 per cent of a population for the purpose of making inferences about that population
A sample in which every possible combination of elements in the population has an equal chance of constituting the sample
The risk that the auditor fails to identify existing exceptions in the sample; nonsampling risk (nonsampling error) is caused by failure to recognize exceptions and by inappropriate or ineffective audit procedures
A method of sample selection in which the auditor uses professional judgment to select items from the population
A method of selecting a sample such that each population item has a known probability of being included in the sample and the sample is selected by a random process
A sample with characteristics the same as those of the population
The use of mathematical measurement techniques to calculate formal statistical results and quantify sampling risk
The exception rate that the auditor will permit in the population and still be willing to conclude the control is operating effectively

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