Question 1

In analysis of the results of an attribute sampling plan, an auditor may determine that the sample size must be increased.

Accepted Answer

A) True 
 B)False

Question 2

Non-statistical samples should be based on the same audit considerations as those used for statistical sampling.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not a type of statistical method that provides results in dollar terms?

Accepted Answer

A)  Variables sampling. 
B)  Attributes sampling. 
C)  Monetary unit sampling. 
D)  Probability proportional to size sampling. 
A)  Variables sampling. 
B)  Attributes sampling. 
C)  Monetary unit sampling. 
D)  Probability proportional to size sampling.

Question 4

For tests of controls, the most commonly used statistical method is attribute sampling.

Accepted Answer

A) True 
 B)False

Question 5

For which of the following audit procedure would sampling be most appropriate?

Accepted Answer

A)  Inquiry 
B)  Observation 
C)  Confirmation 
D)  Analytics 
A)  Inquiry 
B)  Observation 
C)  Confirmation 
D)  Analytics

Question 6

When an auditor uses MUS and analyzes misstatements in the lower stratum, which of the following will be multiplied by the sampling interval to calculate the projected misstatement for each misstated item?

Accepted Answer

A)  Audit value. 
B)  Tolerable misstatement. 
C)  Sampling interval. 
D)  Tainting percentage. 
A)  Audit value. 
B)  Tolerable misstatement. 
C)  Sampling interval. 
D)  Tainting percentage.

Question 7

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 8

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

Accepted Answer

A) True 
 B)False

Question 9

A sample which exceeds the tolerable rate of deviation results in the auditor's reliance on internal control effectiveness.

Accepted Answer

A) True 
 B)False

Question 10

Audit sampling is the application of an audit procedure to less than 100 percent of the items within an account balance or class of transactions for the purpose of evaluating some characteristic.

Accepted Answer

A) True 
 B)False

Question 11

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 12

The results of MUS sampling will be unacceptable when the total estimated misstatement exceeds which of the following?

Accepted Answer

A)  The tolerable error rate. 
B)  The tolerable misstatement amount. 
C)  The expected deviation rate. 
D)  The expected deviation amount. 
A)  The tolerable error rate. 
B)  The tolerable misstatement amount. 
C)  The expected deviation rate. 
D)  The expected deviation amount.

Question 13

Which of the following statistical sampling methods is most commonly used to test control procedures?

Accepted Answer

A)  Variable sampling. 
B)  Ratio estimation sampling. 
C)  Attribute sampling. 
D)  Dollar unit sampling. 
A)  Variable sampling. 
B)  Ratio estimation sampling. 
C)  Attribute sampling. 
D)  Dollar unit sampling.

Question 14

Statistical sampling used in control testing eliminates the need for evaluation of errors from a qualitative perspective.

Accepted Answer

A) True 
 B)False

Question 15

Stratification of the population into several homogeneous subpopulations generally creates audit efficiency.

Accepted Answer

A) True 
 B)False

Question 16

Application of MUS.
Explain why monetary unit sampling is not useful for detecting understatements

Accepted Answer

Monetary unit sampling is a technique th

Question 17

The most common statistical approaches for substantive testing are classical variables sampling and MUS.

Accepted Answer

A) True 
 B)False

Question 18

When planning a test of details using MUS sampling, tolerable misstatement is usually set at what level?

Accepted Answer

A)  Higher than performance materiality. 
B)  Lower than performance materiality 
C)  Higher than the expected error amount. 
D)  Lower than the expected error amount. 
A)  Higher than performance materiality. 
B)  Lower than performance materiality 
C)  Higher than the expected error amount. 
D)  Lower than the expected error amount.

Question 19

Statistical sampling is used when an auditor chooses to examine all purchases of equipment exceeding $1,000.00 and to test the remaining items by analytical procedures.

Accepted Answer

A) True 
 B)False

Question 20

Which one of the following is a proper course of action for the auditor when the total estimated misstatement exceeds the tolerable misstatement?

Accepted Answer

A)  The auditor can ask the client to correct the known misstatements. 
B)  The auditor will analyze the detected misstatements for some common problems. 
C)  The auditor can expand the sample. 
D)  All of the above. 
A)  The auditor can ask the client to correct the known misstatements. 
B)  The auditor will analyze the detected misstatements for some common problems. 
C)  The auditor can expand the sample. 
D)  All of the above.

In analysis of the results of an attribute sampling plan, an auditor may determine that the sample size must be increased.

Non-statistical samples should be based on the same audit considerations as those used for statistical sampling.

Which of the following is not a type of statistical method that provides results in dollar terms?

For tests of controls, the most commonly used statistical method is attribute sampling.

For which of the following audit procedure would sampling be most appropriate?

When an auditor uses MUS and analyzes misstatements in the lower stratum, which of the following will be multiplied by the sampling interval to calculate the projected misstatement for each misstated item?

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.

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

A sample which exceeds the tolerable rate of deviation results in the auditor's reliance on internal control effectiveness.

Audit sampling is the application of an audit procedure to less than 100 percent of the items within an account balance or class of transactions for the purpose of evaluating some characteristic.

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

The results of MUS sampling will be unacceptable when the total estimated misstatement exceeds which of the following?

Which of the following statistical sampling methods is most commonly used to test control procedures?

Statistical sampling used in control testing eliminates the need for evaluation of errors from a qualitative perspective.

Stratification of the population into several homogeneous subpopulations generally creates audit efficiency.

Application of MUS. Explain why monetary unit sampling is not useful for detecting understatements

The most common statistical approaches for substantive testing are classical variables sampling and MUS.

When planning a test of details using MUS sampling, tolerable misstatement is usually set at what level?

Statistical sampling is used when an auditor chooses to examine all purchases of equipment exceeding $1,000.00 and to test the remaining items by analytical procedures.

Which one of the following is a proper course of action for the auditor when the total estimated misstatement exceeds the tolerable misstatement?

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

Other Services Provided by Audit Firms

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

In analysis of the results of an attribute sampling plan, an auditor may determine that the sample size must be increased.

Non-statistical samples should be based on the same audit considerations as those used for statistical sampling.

Which of the following is not a type of statistical method that provides results in dollar terms?

For tests of controls, the most commonly used statistical method is attribute sampling.

For which of the following audit procedure would sampling be most appropriate?

When an auditor uses MUS and analyzes misstatements in the lower stratum, which of the following will be multiplied by the sampling interval to calculate the projected misstatement for each misstated item?

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.

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

A sample which exceeds the tolerable rate of deviation results in the auditor's reliance on internal control effectiveness.

Audit sampling is the application of an audit procedure to less than 100 percent of the items within an account balance or class of transactions for the purpose of evaluating some characteristic.

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

The results of MUS sampling will be unacceptable when the total estimated misstatement exceeds which of the following?

Which of the following statistical sampling methods is most commonly used to test control procedures?

Statistical sampling used in control testing eliminates the need for evaluation of errors from a qualitative perspective.

Stratification of the population into several homogeneous subpopulations generally creates audit efficiency.

Application of MUS. Explain why monetary unit sampling is not useful for detecting understatements

The most common statistical approaches for substantive testing are classical variables sampling and MUS.

When planning a test of details using MUS sampling, tolerable misstatement is usually set at what level?

Statistical sampling is used when an auditor chooses to examine all purchases of equipment exceeding $1,000.00 and to test the remaining items by analytical procedures.

Which one of the following is a proper course of action for the auditor when the total estimated misstatement exceeds the tolerable misstatement?

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

Other Services Provided by Audit Firms

Filters