Exam 12: Managing Audit Data

After planning the sample, selecting the sample and performing the tests it is necessary to evaluate the results.This final stage requires the auditor to consider the qualitative aspects of the errors that were found and to project errors to the population and conclude on the audit test.Explain what is involved in these two final steps of sampling.

If the sample supports the conclusion that the recorded account balance is materially misstated when it is actually not materially misstated, this is the:

Before selecting a sample, it is necessary to specify the expected error.The main purpose for doing this is:

Briefly outline the Guiding Principles that underpin the preparation of an integrated report.

In which of these audit procedures is sampling most likely to be used?

For each of the following situations, indicate whether there would be an increase, decrease, or no effect on sample size: 1 The auditor has assessed control risk as low. 2 The auditor has discovered that the number of sampling units in the population has increased from 2380 to 5640. 3 The auditor has used stratification. 4 The auditor has increased the total error that they are willing to accept. 5 The auditor has assessed the risk of material misstatement as high. 6 The auditor now expects to find more errors than originally anticipated. 7 The risk that the auditor will conclude that a material error does not exist when in fact it does has increased.

The least effective means of controlling non-sampling risk is:

Whenever sampling is used in an audit procedure, uncertainty will be present.The two sources of this uncertainty are:

List the nine steps in planning the sample.

A sample selection method that is appropriate for non-statistical sampling plans, but not statistical plans is:

Define tolerable misstatement, tolerable rate of deviation and confidence level for both tests of control and substantive testing.

List the four advantages and four disadvantages of Probability-Proportional-to-Size (PPS) Sampling compared to Variable Sampling.

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

Identify the three methods of selecting the sample that are suggested in ASA 530 and explain how each is conducted.

The statement that is most accurate about the terminology applied to errors identified when applying tests of controls or substantive testing to an audit sample is:

An auditor is using statistical sampling for tests of controls.Which would be the most appropriate statistical sampling method to use?

An advantage of using stratification is:

In evaluating the sample results, the planned control risk will be supported when the projected deviation rate is:

Of the following factors which would have the effect of decreasing sample size for tests of control?