Exam 2: Auditing and Sampling Techniques

Population is divided into groups, each being fairly homogenous with respect to value and risk in this kind of sampling

The formula for calculating precision is

Which of the following statements is true about Precision

If the desired overall assurance from audit is 95%, the inherent risk is 40% and the control risk is 50%, what would be the desired assurance from substantive tests

The three components of Audit Risk as per the risk model are

The materiality thresholds depend on the ____ of accounts and their _____.

This is a technique that creates an equation to reveal how one variable is related to one or more other variables.

There is a direct relationship between materiality level and the level of audit risk

AMLE in the context of likely errors is used in this stage of audit

Planning materiality may be taken at a lower figure than reporting materiality.

The point where the total value of errors in an account becomes unacceptable to audit is called

Which of the audit procedures is a form of inductive reasoning where the reasonableness of the aggregate results is inferred from the evidence of reliability of the individual details that are tested?

Which kind of audit sampling is generally used for testing controls?

Risk assessment is primarily a part of which of these stages in the audit process?

what are the audit procedures commonly used to obtain audit assurance?

Reflecting all the transactions relating to the period of the accounts without regard to the actual date of payment or receipt is also called

Which method of sampling is not expected to produce representative samples?

A pre-condition for any statistical sampling is the availability of a _______

Extrapolation of sampling results to the population is possible in the case of Judgmental Sampling.

Which method of sampling is expected to produce representative samples?