Exam 15: Audit Sampling for Tests of Controls and Substantive Tests of Transactions

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Describe the differences between statistical and nonstatistical sampling in terms of (1)the sample selection methods used,and (2)quantification of sampling risk.

(Essay)

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Question 101

When determining tolerable exception rate (TER),

(Multiple Choice)

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Question 102

The exception rate that the auditor will permit in the population and still be willing to use the preliminary control risk assessment is called the

(Multiple Choice)

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Question 103

When a population is divided into subpopulations,usually by dollar size,and larger samples are taken from the subpopulation with the larger sizes,________ is being used.

(Multiple Choice)

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Question 104

The advantage of systematic sample selection is that

(Multiple Choice)

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Question 105

Rodgers CPA believes that the rate of client billing errors is 4% and has established a tolerable deviation rate of 6%.In auditing client invoices Rodgers should use

(Multiple Choice)

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Question 106

When using statistical sampling,the auditor would most likely require a smaller sample if the

(Multiple Choice)

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Question 107

In selecting the sample,probabilistic methods must be used for both statistical and nonstatistical sampling.

(True/False)

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Question 108

One way to control sampling risk is to increase sample size.

(True/False)

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Question 109

An advantage of using statistical sampling techniques is that such techniques

(Multiple Choice)

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Question 110

When the auditor decides to select less than 100 percent of the population for testing,the auditor is said to use

(Multiple Choice)

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Question 111

When the sample exception rate is greater than the tolerable exception rate in attributes sampling,one possible appropriate course of action is to increase sample size.

(True/False)

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Question 112

If the auditor concludes that the computer upper exception rate (CUER)is 5% at an 8% sampling risk,this means that the exception rate in the population is no greater than 5% with an 8% risk of the exception rate exceeding 5%.

(True/False)

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Question 113

Simple random sampling

(Multiple Choice)

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Question 114

When the estimated population exception rate exceeds the sample exception rate,the auditor can conclude that the sample results do not support the preliminary assessed control risk.

(True/False)

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Question 115

The upper limit of the probable population exception rate is the

(Multiple Choice)

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Question 116

Discuss two causes of nonsampling risk.Also discuss ways the auditor can control nonsampling risk.

(Essay)

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Question 117

When the auditor goes through a population and selects items using nonprobabilistic selection methods,without regard to their size,source,or other distinguishing characteristics,it is called

(Multiple Choice)

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Question 118

Which of the following statements is most correct with respect to the evaluation of nonprobabilistic sample results?

(Multiple Choice)

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Question 119

Discuss what is meant by "sampling risk" and "nonsampling risk."

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Question 120

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Exam 15: Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Describe the differences between statistical and nonstatistical sampling in terms of (1)the sample selection methods used,and (2)quantification of sampling risk.

When determining tolerable exception rate (TER),

The exception rate that the auditor will permit in the population and still be willing to use the preliminary control risk assessment is called the

When a population is divided into subpopulations,usually by dollar size,and larger samples are taken from the subpopulation with the larger sizes,________ is being used.

The advantage of systematic sample selection is that

Rodgers CPA believes that the rate of client billing errors is 4% and has established a tolerable deviation rate of 6%.In auditing client invoices Rodgers should use

When using statistical sampling,the auditor would most likely require a smaller sample if the

In selecting the sample,probabilistic methods must be used for both statistical and nonstatistical sampling.

One way to control sampling risk is to increase sample size.

An advantage of using statistical sampling techniques is that such techniques

When the auditor decides to select less than 100 percent of the population for testing,the auditor is said to use

When the sample exception rate is greater than the tolerable exception rate in attributes sampling,one possible appropriate course of action is to increase sample size.

If the auditor concludes that the computer upper exception rate (CUER)is 5% at an 8% sampling risk,this means that the exception rate in the population is no greater than 5% with an 8% risk of the exception rate exceeding 5%.

Simple random sampling

When the estimated population exception rate exceeds the sample exception rate,the auditor can conclude that the sample results do not support the preliminary assessed control risk.

The upper limit of the probable population exception rate is the

Discuss two causes of nonsampling risk.Also discuss ways the auditor can control nonsampling risk.

When the auditor goes through a population and selects items using nonprobabilistic selection methods,without regard to their size,source,or other distinguishing characteristics,it is called

Which of the following statements is most correct with respect to the evaluation of nonprobabilistic sample results?

Discuss what is meant by "sampling risk" and "nonsampling risk."

The Demand for Audit and Other Assurance Services

The Cpa Profession

Audit Reports

Professional Ethics

Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Fraud Auditing

Internal Control and Coso Framework

Assessing Control Risk and Reporting on Internal Controls

Overall Audit Strategy and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls,

Completing the Tests in the Acquisition and Payment Cycle:

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Completing the Audit

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

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