Question 1

Random number,systematic sampling and material value sampling are acceptable sample selection methods for statistical sampling.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following applications are incorporated into statistical sampling?

Accepted Answer

A) Binomial and confidence intervals. 
B) Random and haphazard selection. 
C) Hypergeometric distribution with audit risk. 
D) Probability and statistical inference with audit judgment. 
A) Binomial and confidence intervals. 
B) Random and haphazard selection. 
C) Hypergeometric distribution with audit risk. 
D) Probability and statistical inference with audit judgment.

Question 3

Attribute sampling for testing controls should only be done by the auditor at the end of the fiscal period under audit.

Accepted Answer

A) True 
 B)False

Question 4

The tolerable misstatement is the confidence level needed to infer population values.

Accepted Answer

A) True 
 B)False

Question 5

When determining sampling size in attribute sampling,which of the following is usually true?

Accepted Answer

A) Sampling risk will be too high. 
B) Tolerable failure rate is predetermined. 
C) A failure rate is not to be expected. 
D) Population size is not a major factor. 
A) Sampling risk will be too high. 
B) Tolerable failure rate is predetermined. 
C) A failure rate is not to be expected. 
D) Population size is not a major factor.

Question 6

In MUS,what is meant by a sampling interval of 900?

Accepted Answer

A) Every 900th item will be selected. 
B) Every 900th dollar will be selected. 
C) Expected misstatement is 900. 
D) Tolerable misstatement is 900. 
A) Every 900th item will be selected. 
B) Every 900th dollar will be selected. 
C) Expected misstatement is 900. 
D) Tolerable misstatement is 900.

Question 7

Which of the following is not a type of statistical method that provides results in dollar terms?

Accepted Answer

A) Variables sampling. 
B) Attributes sampling. 
C) Monetary unit sampling. 
D) Probability proportional to size sampling. 
A) Variables sampling. 
B) Attributes sampling. 
C) Monetary unit sampling. 
D) Probability proportional to size sampling.

Question 8

Sample size in a MUS sample is a function of risk of incorrect acceptance,tolerable misstatement,and expected misstatement.

Accepted Answer

A) True 
 B)False

Question 9

Non-statistical samples should be based on the same audit considerations as those used for statistical sampling.

Accepted Answer

A) True 
 B)False

Question 10

In analysis of the results of an attribute sampling plan,an auditor may determine that the sample size must be increased.

Accepted Answer

A) True 
 B)False

Question 11

In attribute sampling if the selected item cannot be located,the auditor should assume that the control procedure was not followed and assess that item as a failure.

Accepted Answer

A) True 
 B)False

Question 12

The results of MUS sampling will be unacceptable when the total estimated misstatement exceeds which of the following?

Accepted Answer

A) Greater than tolerable misstatement. 
B) Less than tolerable misstatement. 
C) Equal to tolerable misstatement. 
D) Either A or C. 
A) Greater than tolerable misstatement. 
B) Less than tolerable misstatement. 
C) Equal to tolerable misstatement. 
D) Either A or C.

Question 13

Statistical sampling is used when an auditor chooses to examine all purchases of equipment exceeding $1,000.00 and to test the remaining items by analytical procedures.

Accepted Answer

A) True 
 B)False

Question 14

The most efficient method of testing a large population is the use of non-statistical sampling.

Accepted Answer

A) True 
 B)False

Question 15

Using attribute sampling the auditor can test for multiple attributes using the same source documents.

Accepted Answer

A) True 
 B)False

Question 16

Statistical sampling combines the theory of probability and statistical inference with audit judgment and experience.

Accepted Answer

A) True 
 B)False

Question 17

Sample selection Before procedures using statistical or non-statistical sampling methods begin,the auditor must determine how the sample will be selected.Discuss the various types of sample selection,when they are used and,generally,how they are used.Give examples.

Accepted Answer

Random number selection Random number se

Question 18

Which one of the following issues need not be addressed when planning an audit sample to test control procedures?

Accepted Answer

A) Audit objective of the test. 
B) Minimum failure rate. 
C) Expected population deviation rate. 
D) Auditor's allowable risk of assessing control risk too low. 
A) Audit objective of the test. 
B) Minimum failure rate. 
C) Expected population deviation rate. 
D) Auditor's allowable risk of assessing control risk too low.

Question 19

Audit sampling is the application of an audit procedure to less than 100 percent of the items within an account balance or class of transactions for the purpose of evaluating some characteristic.

Accepted Answer

A) True 
 B)False

Question 20

The expected population deviation rate is the auditor's best estimate of the percentage of transactions processed for which a control is not effectively applied.

Accepted Answer

A) True 
 B)False

Random number,systematic sampling and material value sampling are acceptable sample selection methods for statistical sampling.

Which of the following applications are incorporated into statistical sampling?

Attribute sampling for testing controls should only be done by the auditor at the end of the fiscal period under audit.

The tolerable misstatement is the confidence level needed to infer population values.

When determining sampling size in attribute sampling,which of the following is usually true?

In MUS,what is meant by a sampling interval of 900?

Which of the following is not a type of statistical method that provides results in dollar terms?

Sample size in a MUS sample is a function of risk of incorrect acceptance,tolerable misstatement,and expected misstatement.

Non-statistical samples should be based on the same audit considerations as those used for statistical sampling.

In analysis of the results of an attribute sampling plan,an auditor may determine that the sample size must be increased.

In attribute sampling if the selected item cannot be located,the auditor should assume that the control procedure was not followed and assess that item as a failure.

The results of MUS sampling will be unacceptable when the total estimated misstatement exceeds which of the following?

Statistical sampling is used when an auditor chooses to examine all purchases of equipment exceeding $1,000.00 and to test the remaining items by analytical procedures.

The most efficient method of testing a large population is the use of non-statistical sampling.

Using attribute sampling the auditor can test for multiple attributes using the same source documents.

Statistical sampling combines the theory of probability and statistical inference with audit judgment and experience.

Sample selection Before procedures using statistical or non-statistical sampling methods begin,the auditor must determine how the sample will be selected.Discuss the various types of sample selection,when they are used and,generally,how they are used.Give examples.

Which one of the following issues need not be addressed when planning an audit sample to test control procedures?

Audit sampling is the application of an audit procedure to less than 100 percent of the items within an account balance or class of transactions for the purpose of evaluating some characteristic.

The expected population deviation rate is the auditor's best estimate of the percentage of transactions processed for which a control is not effectively applied.

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

Other Services Provided by Audit Firms

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

Random number,systematic sampling and material value sampling are acceptable sample selection methods for statistical sampling.

Which of the following applications are incorporated into statistical sampling?

Attribute sampling for testing controls should only be done by the auditor at the end of the fiscal period under audit.

The tolerable misstatement is the confidence level needed to infer population values.

When determining sampling size in attribute sampling,which of the following is usually true?

In MUS,what is meant by a sampling interval of 900?

Which of the following is not a type of statistical method that provides results in dollar terms?

Sample size in a MUS sample is a function of risk of incorrect acceptance,tolerable misstatement,and expected misstatement.

Non-statistical samples should be based on the same audit considerations as those used for statistical sampling.

In analysis of the results of an attribute sampling plan,an auditor may determine that the sample size must be increased.

In attribute sampling if the selected item cannot be located,the auditor should assume that the control procedure was not followed and assess that item as a failure.

The results of MUS sampling will be unacceptable when the total estimated misstatement exceeds which of the following?

Statistical sampling is used when an auditor chooses to examine all purchases of equipment exceeding $1,000.00 and to test the remaining items by analytical procedures.

The most efficient method of testing a large population is the use of non-statistical sampling.

Using attribute sampling the auditor can test for multiple attributes using the same source documents.

Statistical sampling combines the theory of probability and statistical inference with audit judgment and experience.

Sample selection Before procedures using statistical or non-statistical sampling methods begin,the auditor must determine how the sample will be selected.Discuss the various types of sample selection,when they are used and,generally,how they are used.Give examples.

Which one of the following issues need not be addressed when planning an audit sample to test control procedures?

Audit sampling is the application of an audit procedure to less than 100 percent of the items within an account balance or class of transactions for the purpose of evaluating some characteristic.

The expected population deviation rate is the auditor's best estimate of the percentage of transactions processed for which a control is not effectively applied.

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

Other Services Provided by Audit Firms

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