Question 1

An auditor may use sampling to obtain information about many different characteristics of a population.However, most audit samples lead either to an estimate of:

Accepted Answer

A) a dollar rate or a deviation amount. 
B) the number of items in the population or the dollar amount of the population. 
C) size of the population or the distribution of the population. 
D) a deviation rate or a dollar amount. 
A) a dollar rate or a deviation amount. 
B) the number of items in the population or the dollar amount of the population. 
C) size of the population or the distribution of the population. 
D) a deviation rate or a dollar amount. D

Question 2

Sample size is determined by the application of a statistically based formula which includes all of the following except:

Accepted Answer

A) tolerable error. 
B) required confidence level. 
C) sampling risk. 
D) all of the above are included in the formula. 
A) tolerable error. 
B) required confidence level. 
C) sampling risk. 
D) all of the above are included in the formula. C

Question 3

Which of the following is not a type of sampling risk?

Accepted Answer

A) Risk of overreliance. 
B) Risk of incorrect decision. 
C) Risk of sample size. 
D) Risk of underreliance. 
A) Risk of overreliance. 
B) Risk of incorrect decision. 
C) Risk of sample size. 
D) Risk of underreliance. C

Question 4

Data analytics for auditors

Accepted Answer

A) is about enhancing audit quality. 
B) offers a practical way for management to manage some important aspects of IT systems in larger entities. 
C) provides the means to better identify financial reporting, operational business risks and fraud. 
D) a and C 
A) is about enhancing audit quality. 
B) offers a practical way for management to manage some important aspects of IT systems in larger entities. 
C) provides the means to better identify financial reporting, operational business risks and fraud. 
D) a and C

Question 5

A method of non-statistical sampling that involves selecting items at will without regard to document number, amount, or other features is:

Accepted Answer

A) haphazard sampling. 
B) block sampling. 
C) systematic sampling. 
D) random sampling. 
A) haphazard sampling. 
B) block sampling. 
C) systematic sampling. 
D) random sampling.

Question 6

The steps in planning the sample are listed as follows:   Which one of the following shows steps A through E in the correct order?

Accepted Answer

A) B, E, D, A and C. 
B) C, A, D, E and B. 
C) A, B, C, D and E. 
D) C, A, B, E and D. 
A) B, E, D, A and C. 
B) C, A, D, E and B. 
C) A, B, C, D and E. 
D) C, A, B, E and D.

Question 7

The sampling unit is:

Accepted Answer

A) the physical location of the population from which the sample will be drawn. 
B) an individual item in the population. 
C) the individual control procedure being tested. 
D) a population expressed as an attribute of interest. 
A) the physical location of the population from which the sample will be drawn. 
B) an individual item in the population. 
C) the individual control procedure being tested. 
D) a population expressed as an attribute of interest.

Question 8

The control which is least likely to be used as an attribute in an audit sampling plan for tests of controls is:

Accepted Answer

A) authorisation of sale by appropriate sales order department personnel. 
B) approval of credit by authorised credit department personnel. 
C) hiring of competent personnel only. 
D) existence of a sales invoice copy. 
A) authorisation of sale by appropriate sales order department personnel. 
B) approval of credit by authorised credit department personnel. 
C) hiring of competent personnel only. 
D) existence of a sales invoice copy.

Question 9

Which of these would not be considered a method of audit sampling?

Accepted Answer

A) Block selection. 
B) Random selection. 
C) Systematic selection. 
D) Haphazard selection. 
A) Block selection. 
B) Random selection. 
C) Systematic selection. 
D) Haphazard selection.

Question 10

Which of these would not be considered to be a source of non-sampling risk?

Accepted Answer

A) Inappropriate sample size. 
B) Reliance on erroneous information. 
C) Human mistakes. 
D) Inappropriate audit procedures. 
A) Inappropriate sample size. 
B) Reliance on erroneous information. 
C) Human mistakes. 
D) Inappropriate audit procedures.

Question 11

Which of the following is NOT one of The Capitals referred to in the Integrated Reporting (IR) framework?

Accepted Answer

A) Social and relationship capital. 
B) Intellectual capital. 
C) Human capital. 
D) None of the above.All are examples of IR Capitals. 
A) Social and relationship capital. 
B) Intellectual capital. 
C) Human capital. 
D) None of the above.All are examples of IR Capitals.

Question 12

The risk of concluding a material error does not exist when in fact it does, is also known as:

Accepted Answer

A) risk of overreliance. 
B) risk of underreliance. 
C) risk of incorrect acceptance. 
D) risk of incorrect rejection. 
A) risk of overreliance. 
B) risk of underreliance. 
C) risk of incorrect acceptance. 
D) risk of incorrect rejection.

Question 13

When systematic selection is used to select a sample:

Accepted Answer

A) every "nth" item is selected. 
B) items are randomly selected. 
C) items are stratified for selection. 
D) there is no structure to selection. 
A) every "nth" item is selected. 
B) items are randomly selected. 
C) items are stratified for selection. 
D) there is no structure to selection.

Question 14

The greatest impact on audit effectiveness comes from the risk(s) of:

Accepted Answer

A) underreliance and incorrect rejection. 
B) overreliance and incorrect acceptance. 
C) underreliance and incorrect acceptance. 
D) overreliance and incorrect rejection. 
A) underreliance and incorrect rejection. 
B) overreliance and incorrect acceptance. 
C) underreliance and incorrect acceptance. 
D) overreliance and incorrect rejection.

Question 15

A situation in which variable sampling was preferable over PPS sampling would be:

Accepted Answer

A) where errors of understatement are expected or are being sought. 
B) where the population includes zero and negative balances. 
C) where many errors are expected. 
D) all of the above. 
A) where errors of understatement are expected or are being sought. 
B) where the population includes zero and negative balances. 
C) where many errors are expected. 
D) all of the above.

Question 16

The risk of concluding control risk is lower than it actually is, is also known as:

Accepted Answer

A) risk of overreliance. 
B) risk of underreliance. 
C) risk of incorrect acceptance. 
D) risk of incorrect rejection. 
A) risk of overreliance. 
B) risk of underreliance. 
C) risk of incorrect acceptance. 
D) risk of incorrect rejection.

Question 17

Which of the following is an advantage of PPS sampling over variable sampling?

Accepted Answer

A) It is more suitable for detecting errors of understatement. 
B) Individually material items are automatically selected. 
C) As expected error increases, sample size will be smaller than that required by variable sampling. 
D) All of the above. 
A) It is more suitable for detecting errors of understatement. 
B) Individually material items are automatically selected. 
C) As expected error increases, sample size will be smaller than that required by variable sampling. 
D) All of the above.

Question 18

An informal non-statistical sampling plan

Accepted Answer

A) uses a structured approach to determine the sample size and evaluate the sample results. 
B) determines sample size and results on a quantitative basis. 
C) results in qualitative conclusions about the population. 
D) reduces the likelihood that the auditor will fail to recognise an unacceptable level of sampling risk. 
A) uses a structured approach to determine the sample size and evaluate the sample results. 
B) determines sample size and results on a quantitative basis. 
C) results in qualitative conclusions about the population. 
D) reduces the likelihood that the auditor will fail to recognise an unacceptable level of sampling risk.

Question 19

Audit sampling is involved whenever an auditor:

Accepted Answer

A) performs tests of controls. 
B) examines 100% of the population. 
C) performs substantive tests. 
D) forms a conclusion about the population from which the sample is drawn. 
A) performs tests of controls. 
B) examines 100% of the population. 
C) performs substantive tests. 
D) forms a conclusion about the population from which the sample is drawn.

Question 20

Before selecting the sample for testing, it is necessary to plan what that sample will be.Which of these is not a step in planning the sample?

Accepted Answer

A) Determine the objectives of the test. 
B) Consider qualitative aspects of the errors. 
C) Identify the sampling unit. 
D) Specify tolerable error. 
A) Determine the objectives of the test. 
B) Consider qualitative aspects of the errors. 
C) Identify the sampling unit. 
D) Specify tolerable error.

An auditor may use sampling to obtain information about many different characteristics of a population.However, most audit samples lead either to an estimate of:

Sample size is determined by the application of a statistically based formula which includes all of the following except:

Which of the following is not a type of sampling risk?

Data analytics for auditors

A method of non-statistical sampling that involves selecting items at will without regard to document number, amount, or other features is:

The steps in planning the sample are listed as follows: Which one of the following shows steps A through E in the correct order?

The sampling unit is:

The control which is least likely to be used as an attribute in an audit sampling plan for tests of controls is:

Which of these would not be considered a method of audit sampling?

Which of these would not be considered to be a source of non-sampling risk?

Which of the following is NOT one of The Capitals referred to in the Integrated Reporting (IR) framework?

The risk of concluding a material error does not exist when in fact it does, is also known as:

When systematic selection is used to select a sample:

The greatest impact on audit effectiveness comes from the risk(s) of:

A situation in which variable sampling was preferable over PPS sampling would be:

The risk of concluding control risk is lower than it actually is, is also known as:

Which of the following is an advantage of PPS sampling over variable sampling?

An informal non-statistical sampling plan

Audit sampling is involved whenever an auditor:

Before selecting the sample for testing, it is necessary to plan what that sample will be.Which of these is not a step in planning the sample?

An Overview of Auditing

Governance and the Auditor

Professional Ethics, Regulation and Liability

Quality and Standards of Assurance Engagements

Overview of the Audit Financial Reports

The Auditors Report

Client Evaluation and Planning the Audit

Audit Risk Assessment

Materiality and Audit Evidence

Tests of Controls

Designing Substantive Procedures

Completing the Audit

Filters

Exam 12: Managing Audit Data

An auditor may use sampling to obtain information about many different characteristics of a population.However, most audit samples lead either to an estimate of:

Sample size is determined by the application of a statistically based formula which includes all of the following except:

Which of the following is not a type of sampling risk?

Data analytics for auditors

A method of non-statistical sampling that involves selecting items at will without regard to document number, amount, or other features is:

The steps in planning the sample are listed as follows: Which one of the following shows steps A through E in the correct order?

The sampling unit is:

The control which is least likely to be used as an attribute in an audit sampling plan for tests of controls is:

Which of these would not be considered a method of audit sampling?

Which of these would not be considered to be a source of non-sampling risk?

Which of the following is NOT one of The Capitals referred to in the Integrated Reporting (IR) framework?

The risk of concluding a material error does not exist when in fact it does, is also known as:

When systematic selection is used to select a sample:

The greatest impact on audit effectiveness comes from the risk(s) of:

A situation in which variable sampling was preferable over PPS sampling would be:

The risk of concluding control risk is lower than it actually is, is also known as:

Which of the following is an advantage of PPS sampling over variable sampling?

An informal non-statistical sampling plan

Audit sampling is involved whenever an auditor:

Before selecting the sample for testing, it is necessary to plan what that sample will be.Which of these is not a step in planning the sample?

An Overview of Auditing

Governance and the Auditor

Professional Ethics, Regulation and Liability

Quality and Standards of Assurance Engagements

Overview of the Audit Financial Reports

The Auditors Report

Client Evaluation and Planning the Audit

Audit Risk Assessment

Materiality and Audit Evidence

Tests of Controls

Designing Substantive Procedures

Completing the Audit

Filters