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

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The tolerable failure rate is the level at which the control's failure to operate would cause the auditor to conclude that the control is not effective and would likely change the auditor's planned assessment of control risk in performing tests of account balances.

(True/False)

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Question 101

Which of the following is a factor that the auditor should consider when choosing between non-statistical and statistical sampling?

(Multiple Choice)

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Question 102

Attribute sampling is used in which of the following situations?

(Multiple Choice)

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Question 103

In attribute sampling if the selected item cannot be located, the auditor should assume that the control procedure was not followed and assess that item as a failure.

(True/False)

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Question 104

Statistical sampling assists auditors in determining the sufficiency of evidence gathered.

(True/False)

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Question 105

Population items with a zero balance have the same chance of being chosen as those with dollar balances when using MUS sampling.

(True/False)

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Question 106

By using Generalized Audit Software (GAS), the auditor can potentially audit the whole population rather than taking a sample.

(True/False)

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Question 107

Random number, systematic sampling and material value sampling are acceptable sample selection methods for statistical sampling.

(True/False)

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Question 108

Which of the following is not considered when obtaining audit evidence through sampling?

(Multiple Choice)

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Question 109

An attribute is defined as a characteristic of the population of interest to the auditor.

(True/False)

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Question 110

Sampling risk is defined as the risk that an inference drawn from a sample will be incorrect.

(True/False)

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Question 111

Which of the following are limitations of using the MUS sampling method?

(Multiple Choice)

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Question 112

MUS is designed to test for which of the following?

(Multiple Choice)

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Question 113

Monetary unit sampling (MUS) sampling is designed to test whether there is an acceptable risk of account balance understatement.

(True/False)

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Question 114

Showing 101 - 114 of 114

The tolerable failure rate is the level at which the control's failure to operate would cause the auditor to conclude that the control is not effective and would likely change the auditor's planned assessment of control risk in performing tests of account balances.

Which of the following is a factor that the auditor should consider when choosing between non-statistical and statistical sampling?

Attribute sampling is used in which of the following situations?

In attribute sampling if the selected item cannot be located, the auditor should assume that the control procedure was not followed and assess that item as a failure.

Statistical sampling assists auditors in determining the sufficiency of evidence gathered.

Population items with a zero balance have the same chance of being chosen as those with dollar balances when using MUS sampling.

By using Generalized Audit Software (GAS), the auditor can potentially audit the whole population rather than taking a sample.

Random number, systematic sampling and material value sampling are acceptable sample selection methods for statistical sampling.

Which of the following is not considered when obtaining audit evidence through sampling?

An attribute is defined as a characteristic of the population of interest to the auditor.

Sampling risk is defined as the risk that an inference drawn from a sample will be incorrect.

Which of the following are limitations of using the MUS sampling method?

MUS is designed to test for which of the following?

Monetary unit sampling (MUS) sampling is designed to test whether there is an acceptable risk of account balance understatement.

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