Question 1

Projected misstatements are developed by extrapolation from the misstatements in sample items to the population.

Accepted Answer

A) True 
 B)False

Question 2

That auditor will do which of the following when the results of sample testing conclude that there is misstatement in excess of the tolerable misstatement?

Accepted Answer

A) Issue a disclaimer of opinion. 
B) Throw out the sample. 
C) Propose adjustments to the client. 
D) Disclose the misstatement in the client's financial statements. 
A) Issue a disclaimer of opinion. 
B) Throw out the sample. 
C) Propose adjustments to the client. 
D) Disclose the misstatement in the client's financial statements.

Question 3

Audit sampling implies the gathering of evidence to use as a basis for making valid inferences about the characteristics of the population as a whole without examining every transaction.

Accepted Answer

A) True 
 B)False

Question 4

The risk of incorrect acceptance of an account balance as correct,when in fact it is not correct,bears directly on the effectiveness of an audit.

Accepted Answer

A) True 
 B)False

Question 5

When performing substantive tests using sampling methods,the auditor's main concern is the risk of incorrect rejection.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a factor that the auditor should consider when choosing between non-statistical and statistical sampling?

Accepted Answer

A) Whether the audit staff is adequately trained to use statistical sampling. 
B) Whether the population lends itself to a random-based selection method. 
C) Whether the auditor wants a statistical measure of the risk of drawing a wrong conclusion. 
D) All of the above. 
A) Whether the audit staff is adequately trained to use statistical sampling. 
B) Whether the population lends itself to a random-based selection method. 
C) Whether the auditor wants a statistical measure of the risk of drawing a wrong conclusion. 
D) All of the above.

Question 7

An example of attribute testing involves obtaining evidence that the client has matched the vendor invoice details with a purchase order and receiving report before payment approval.

Accepted Answer

A) True 
 B)False

Question 8

The individual auditable elements defined by the auditor are the sampling units.

Accepted Answer

A) True 
 B)False

Question 9

In testing the reasonableness of an account balance,if MUS sampling cannot be used because of its limitations,what is an alternative statistical method?

Accepted Answer

A) Attribute sampling. 
B) Classical variables sampling. 
C) Discovery sampling. 
D) All of the above. 
A) Attribute sampling. 
B) Classical variables sampling. 
C) Discovery sampling. 
D) All of the above.

Question 10

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

Accepted Answer

A) Each item in the population having an equal chance of selection. 
B) Every nth item being selected after a random start. 
C) An arbitrary selection with no conscious bias. 
D) Selecting all items on a day or week. 
A) Each item in the population having an equal chance of selection. 
B) Every nth item being selected after a random start. 
C) An arbitrary selection with no conscious bias. 
D) Selecting all items on a day or week.

Question 11

In selecting a sample for attribute testing,block sampling involves which of the following approaches?

Accepted Answer

A) Each item in the population having an equal chance of selection. 
B) Every nth item being selected after a random start. 
C) An arbitrary selection with no conscious bias. 
D) Selecting all items on a day or week. 
A) Each item in the population having an equal chance of selection. 
B) Every nth item being selected after a random start. 
C) An arbitrary selection with no conscious bias. 
D) Selecting all items on a day or week.

Question 12

Which of the following occurs when,based on sample results,control risk is assessed excessively high?

Accepted Answer

A) Audit inefficiency. 
B) A less expensive audit. 
C) Reduction of substantive testing. 
D) Errors that are more likely to occur than anticipated. 
A) Audit inefficiency. 
B) A less expensive audit. 
C) Reduction of substantive testing. 
D) Errors that are more likely to occur than anticipated.

Question 13

Random number,haphazard selection and block sampling are acceptable sample selection methods for non-statistical sampling.

Accepted Answer

A) True 
 B)False

Projected misstatements are developed by extrapolation from the misstatements in sample items to the population.

That auditor will do which of the following when the results of sample testing conclude that there is misstatement in excess of the tolerable misstatement?

Audit sampling implies the gathering of evidence to use as a basis for making valid inferences about the characteristics of the population as a whole without examining every transaction.

The risk of incorrect acceptance of an account balance as correct,when in fact it is not correct,bears directly on the effectiveness of an audit.

When performing substantive tests using sampling methods,the auditor's main concern is the risk of incorrect rejection.

Which of the following is a factor that the auditor should consider when choosing between non-statistical and statistical sampling?

An example of attribute testing involves obtaining evidence that the client has matched the vendor invoice details with a purchase order and receiving report before payment approval.

The individual auditable elements defined by the auditor are the sampling units.

In testing the reasonableness of an account balance,if MUS sampling cannot be used because of its limitations,what is an alternative statistical method?

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

In selecting a sample for attribute testing,block sampling involves which of the following approaches?

Which of the following occurs when,based on sample results,control risk is assessed excessively high?

Random number,haphazard selection and block sampling are acceptable sample selection methods for non-statistical sampling.

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

Projected misstatements are developed by extrapolation from the misstatements in sample items to the population.

That auditor will do which of the following when the results of sample testing conclude that there is misstatement in excess of the tolerable misstatement?

Audit sampling implies the gathering of evidence to use as a basis for making valid inferences about the characteristics of the population as a whole without examining every transaction.

The risk of incorrect acceptance of an account balance as correct,when in fact it is not correct,bears directly on the effectiveness of an audit.

When performing substantive tests using sampling methods,the auditor's main concern is the risk of incorrect rejection.

Which of the following is a factor that the auditor should consider when choosing between non-statistical and statistical sampling?

An example of attribute testing involves obtaining evidence that the client has matched the vendor invoice details with a purchase order and receiving report before payment approval.

The individual auditable elements defined by the auditor are the sampling units.

In testing the reasonableness of an account balance,if MUS sampling cannot be used because of its limitations,what is an alternative statistical method?

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

In selecting a sample for attribute testing,block sampling involves which of the following approaches?

Which of the following occurs when,based on sample results,control risk is assessed excessively high?

Random number,haphazard selection and block sampling are acceptable sample selection methods for non-statistical sampling.

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

Filters