Exam 8: Specialized Audit Tools: Sampling and Generalized Audit Software

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Concluding that the book value of inventory is correct when it is materially misstated is an example of which of the following risks?

(Multiple Choice)

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Question 41

An auditor uses sampling to determine the reasonableness of an account balance by performing detailed analysis of the selected items making up the account balance.

(True/False)

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Question 42

MUS sampling has all of the following advantages over other statistical methods except which of the following?

(Multiple Choice)

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Question 43

Application of MUS Explain why monetary unit sampling is not useful for detecting understatements

(Essay)

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Question 44

Which of the following is a major disadvantage of MUS sampling?

(Multiple Choice)

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Question 45

Evaluating statistical sample results is one of the tasks that can be performed by GAS.

(True/False)

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Question 46

When an auditor uses MUS and analyzes misstatements in the lower stratum,which of the following will be multiplied by the sampling interval to calculate the projected misstatement for each misstated item?

(Multiple Choice)

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Question 47

Monetary unit sampling (MUS)sampling is designed to test whether there is an acceptable risk of account balance understatement.

(True/False)

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Question 48

When confirming receivables in testing for overstatements,assume that there are few or no misstatements expected and the selection will be based on the dollar value of individual items.Which of the following is the auditor most likely to use?

(Multiple Choice)

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Question 49

In attribute sampling if the upper limit of the possible deviation rate exceeds the tolerable rate the auditor can rely upon the control as being effective.

(True/False)

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Question 50

Using MUS sampling Describe MUS sampling and identify the conditions that would cause an auditor choose to use MUS sampling.

(Essay)

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Question 51

The auditor must define the population to which sampling relates if the auditor is to use statistical sampling for substantive tests of account balances.

(True/False)

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Question 52

Which of the following does the design of a MUS sample not require the auditor to determine?

(Multiple Choice)

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Question 53

When testing controls,the use of haphazard selection of a sample allows for random,statistical evaluation.

(True/False)

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Question 54

Attribute sampling is used in which of the following situations?

(Multiple Choice)

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Question 55

Non-statistical sampling Describe non-statistical sampling for test of account balances and how it is used by the auditor.

(Essay)

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Question 56

In selecting a sample for attribute testing,systematic selection involves which of the following approaches?

(Multiple Choice)

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Question 57

Which of the following is a method of eliminating non-sampling risk?

(Multiple Choice)

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Question 58

Nonsampling risk What is nonsampling risk and how can it be eliminated?

(Essay)

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Question 59

Either nonstatistical or statistical sampling is appropriate for substantive tests of details.

(True/False)

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Question 60

Showing 41 - 60 of 113

Concluding that the book value of inventory is correct when it is materially misstated is an example of which of the following risks?

An auditor uses sampling to determine the reasonableness of an account balance by performing detailed analysis of the selected items making up the account balance.

MUS sampling has all of the following advantages over other statistical methods except which of the following?

Application of MUS Explain why monetary unit sampling is not useful for detecting understatements

Which of the following is a major disadvantage of MUS sampling?

Evaluating statistical sample results is one of the tasks that can be performed by GAS.

When an auditor uses MUS and analyzes misstatements in the lower stratum,which of the following will be multiplied by the sampling interval to calculate the projected misstatement for each misstated item?

Monetary unit sampling (MUS)sampling is designed to test whether there is an acceptable risk of account balance understatement.

When confirming receivables in testing for overstatements,assume that there are few or no misstatements expected and the selection will be based on the dollar value of individual items.Which of the following is the auditor most likely to use?

In attribute sampling if the upper limit of the possible deviation rate exceeds the tolerable rate the auditor can rely upon the control as being effective.

Using MUS sampling Describe MUS sampling and identify the conditions that would cause an auditor choose to use MUS sampling.

The auditor must define the population to which sampling relates if the auditor is to use statistical sampling for substantive tests of account balances.

Which of the following does the design of a MUS sample not require the auditor to determine?

When testing controls,the use of haphazard selection of a sample allows for random,statistical evaluation.

Attribute sampling is used in which of the following situations?

Non-statistical sampling Describe non-statistical sampling for test of account balances and how it is used by the auditor.

In selecting a sample for attribute testing,systematic selection involves which of the following approaches?

Which of the following is a method of eliminating non-sampling risk?

Nonsampling risk What is nonsampling risk and how can it be eliminated?

Either nonstatistical or statistical sampling is appropriate for substantive tests of details.

Auditing: Integral to the Economy

The Risk of Fraud and Mechanisms to Address Fraud: Regulation,corporate Governance,and Audit Quality

Internal Control Over Financial Reporting: Managements Responsibilities and Importance to the External Auditors

Professional Liability and the Need for Quality Auditor Judgments and Ethical Decisions

Professional Auditing Standards and the Audit Opinion Formulation Process

A Framework for Audit Evidence

Planning the Audit: Identifying and Responding to the Risks of Material Misstatement

Auditing the Revenue Cycle

Auditing Cash and Marketable Securities

Auditing Inventory, goods and Services, and Accounts Payable: the Acquisition and Payment Cycle

Auditing Long-Lived Assets: Acquisition, use, impairment, and Disposal

Auditing Debt Obligations and Stockholders Equity Transactions

Activities Required in Completing a Quality Audit

Audit Reports on Financial Statements

Advanced Topics Concerning Complex Auditing Judgments

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