Question 1

When deciding the acceptability of the population,

Accepted Answer

A) the methodology for deciding the acceptability of the population for attributes differs from determining the acceptability for nonstatistical sampling. 
B) before the population can be considered acceptable,the CUER determined on the basis of the actual sample results must be less than or equal to TER when both are based on the same ARO. 
C) when the CUER is greater than the TER,the auditor must increase the sample size. 
D) the CUER is compared with the TER in total,not for each attribute. 
A) the methodology for deciding the acceptability of the population for attributes differs from determining the acceptability for nonstatistical sampling. 
B) before the population can be considered acceptable,the CUER determined on the basis of the actual sample results must be less than or equal to TER when both are based on the same ARO. 
C) when the CUER is greater than the TER,the auditor must increase the sample size. 
D) the CUER is compared with the TER in total,not for each attribute.

Question 2

Because attributes sampling is a statistical sampling approach,it allows the auditor to quantify the allowance for sampling risk and the upper exception rate.

Accepted Answer

A) True 
 B)False

Question 3

Explain the effect on sample size of increasing each of the following: (1)tolerable exception rate,(2)estimated population exception rate,(3)acceptable risk of overreliance,and (4)population size.

Accepted Answer

The tolerable exception rate and accepta

Question 4

Whenever auditors use sampling,they risk making incorrect conclusions about the population.The risk that the auditor concludes that controls are more effective than they actually are is known as the

Accepted Answer

A) risk of overreliance. 
B) risk of underreliance. 
C) risk that the sample is not representative of the population. 
D) risk that the sample conclusions cannot be useful because of nonprobability sampling. 
A) risk of overreliance. 
B) risk of underreliance. 
C) risk that the sample is not representative of the population. 
D) risk that the sample conclusions cannot be useful because of nonprobability sampling.

Question 5

Deviation refers to a departure from prescribed controls or amounts that are not monetarily correct.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not a phase in the planning of both statistical and nonstatistical sampling?

Accepted Answer

A) Plan the sample. 
B) Determine the probability that fraud has occurred. 
C) Select the sample and perform the tests. 
D) Evaluate the results. 
A) Plan the sample. 
B) Determine the probability that fraud has occurred. 
C) Select the sample and perform the tests. 
D) Evaluate the results.

When deciding the acceptability of the population,

Because attributes sampling is a statistical sampling approach,it allows the auditor to quantify the allowance for sampling risk and the upper exception rate.

Explain the effect on sample size of increasing each of the following: (1)tolerable exception rate,(2)estimated population exception rate,(3)acceptable risk of overreliance,and (4)population size.

Whenever auditors use sampling,they risk making incorrect conclusions about the population.The risk that the auditor concludes that controls are more effective than they actually are is known as the

Deviation refers to a departure from prescribed controls or amounts that are not monetarily correct.

Which of the following is not a phase in the planning of both statistical and nonstatistical sampling?

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

Filters

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

When deciding the acceptability of the population,

Because attributes sampling is a statistical sampling approach,it allows the auditor to quantify the allowance for sampling risk and the upper exception rate.

Explain the effect on sample size of increasing each of the following: (1)tolerable exception rate,(2)estimated population exception rate,(3)acceptable risk of overreliance,and (4)population size.

Whenever auditors use sampling,they risk making incorrect conclusions about the population.The risk that the auditor concludes that controls are more effective than they actually are is known as the

Deviation refers to a departure from prescribed controls or amounts that are not monetarily correct.

Which of the following is not a phase in the planning of both statistical and nonstatistical sampling?

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

Filters