Exam 13: Audit Sampling in Substantive Tests

The expansion factor is:

The tainting percentage must be computed in evaluating the results of a PPS sampling plan whenever:

In PPS sampling, the auditor chooses a logical sampling unit compatible with the nature of the auditing procedures to be performed.

Nonstatistical sampling is most effective for larger populations.

To calculate the incremental allowance for sampling risk in a PPS sampling plan, the auditor must consider separately the logical units with book values less than the sampling interval and those that are not.

When the sample results do not support the recorded account balance, the least likely action the auditor might take is:

Audit sampling in involved whenever an auditor:

In PPS sampling:

Which of the following conditions is indispensable in using difference estimation?

Which of the following sampling plans does not use normal distribution theory?

If the auditor expects no misstatements, PPS sampling will usually result in a smaller sample size than under classical variables sampling.

The sampling unit in PPS sampling is an individual dollar.

Audit sampling in substantive tests is subject to both sampling risk and nonsampling risk.

The finite correction factor is recommended in classical variable sampling whenever the auditor samples without replacement.

The most common objective of PPS sampling plans is to obtain evidence that a recorded account balance is not materially misstated.

Nonstatistical sampling is becoming the norm for tests of controls.

The population consists of many individual items for which a book value is recorded for each. Many difference are expected, including some items which may be erroneously valued at zero. Which of the following statistical sampling techniques would not be appropriate under these conditions?

The anticipated misstatement in a PPS sampling plan is:

In an MPU sampling plan, the achieved allowance for sampling risk is sometimes referred to as the precision interval.

The population consists of many individual items for which a book value is known for each. Very few differences between this recorded value and the audited value are expected, but any difference is most likely to be an overstatement. Which of the following statistical sampling techniques would be most appropriate under these conditions?