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

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Choosing sampling methods. Identify the factors that an auditor would consider when choosing between non-statistical sampling and statistical sampling.

(Essay)

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Question 41

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

(Multiple Choice)

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Question 42

Which of the following applications are incorporated into statistical sampling?

(Multiple Choice)

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Question 43

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

(Multiple Choice)

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Question 44

The population is a group of items in an account balance that the auditor wants to test.

(True/False)

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Question 45

Which of the following task is not performed by generalized audit software?

(Multiple Choice)

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Question 46

In MUS sampling basic precision is the upper misstatement limit when no misstatements are detected in a MUS sample. It is computed by multiplying the sampling interval by the error expansion factor.

(True/False)

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Question 47

When performing sampling, the auditor is most concerned with which of the following?

(Multiple Choice)

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Question 48

The sample size decreases as the risk of over-reliance decreases.

(True/False)

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Question 49

In testing account balances, haphazard sampling is an acceptable method of sampling provided the auditor believes the sample to be which of the following?

(Multiple Choice)

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Question 50

The auditor must define the population to which sampling relates if the auditor is to use statistical sampling for substantive tests of account balances.

(True/False)

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Question 51

Tolerable misstatement is the maximum amount of misstatement the auditor can accept in the population without requiring an audit adjustment or a qualified audit opinion.

(True/False)

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Question 52

Incorrect acceptance is directly related to which of the following?

(Multiple Choice)

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Question 53

When evaluating the MUS sample results, the auditor calculates the total estimated misstatement in the account balance based on the sampling process using which of the following components?

(Multiple Choice)

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Question 54

MUS sampling has all of the following advantages over other statistical methods except which of the following?

(Multiple Choice)

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Question 55

Concluding that the book value of inventory is correct when it is materially misstated is an example of which of the following risks?

(Multiple Choice)

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Question 56

Which of the following is a factor of nonsampling risk?

(Multiple Choice)

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Question 57

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

(True/False)

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Question 58

Evaluating misstatements when using sampling to test account balances. Explain the term "misstatement" as it applies to sampling during substantive procedures and explain how the term may be interpreted differently by different auditors.

(Essay)

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Question 59

Sampling risk deals with which of the following?

(Multiple Choice)

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Question 60

Showing 41 - 60 of 114

Choosing sampling methods. Identify the factors that an auditor would consider when choosing between non-statistical sampling and statistical sampling.

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

Which of the following applications are incorporated into statistical sampling?

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

The population is a group of items in an account balance that the auditor wants to test.

Which of the following task is not performed by generalized audit software?

In MUS sampling basic precision is the upper misstatement limit when no misstatements are detected in a MUS sample. It is computed by multiplying the sampling interval by the error expansion factor.

When performing sampling, the auditor is most concerned with which of the following?

The sample size decreases as the risk of over-reliance decreases.

In testing account balances, haphazard sampling is an acceptable method of sampling provided the auditor believes the sample to be which of the following?

The auditor must define the population to which sampling relates if the auditor is to use statistical sampling for substantive tests of account balances.

Tolerable misstatement is the maximum amount of misstatement the auditor can accept in the population without requiring an audit adjustment or a qualified audit opinion.

Incorrect acceptance is directly related to which of the following?

When evaluating the MUS sample results, the auditor calculates the total estimated misstatement in the account balance based on the sampling process using which of the following components?

MUS sampling has all of the following advantages over other statistical methods except which of the following?

Concluding that the book value of inventory is correct when it is materially misstated is an example of which of the following risks?

Which of the following is a factor of nonsampling risk?

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

Evaluating misstatements when using sampling to test account balances. Explain the term "misstatement" as it applies to sampling during substantive procedures and explain how the term may be interpreted differently by different auditors.

Sampling risk deals with which of the following?

Auditing: Integral to the Economy

The Auditors Responsibilities Regarding Fraud and Mechanisms to Address Fraud: Regulation and Corporate Governance

Internal Control Over Financial Reporting: Responsibilities of Management and the External Auditors

Professional Liability, Auditor Judgment Frameworks, and Professional Responsibilities

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

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