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

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Attributes sampling would be an appropriate method to use on which one of the following procedures in an audit program?

(Multiple Choice)

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Question 61

When audit procedures have been completed for an attributes sampling application, the auditor must generalize from the sample to the population.Which of the following statements would be incorrect regarding this process?

(Multiple Choice)

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Question 62

In nonstatistical sampling, the calculated sampling error is the difference between the tolerable exception rate and the sample exception rate.

(True/False)

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Question 63

The conjoined sample exception rate is the auditor's "best estimate" of the actual exception rate in the entire population.

(True/False)

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Question 64

Which of the following statements regarding block sampling is least likely to be true?

(Multiple Choice)

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Question 65

When defining the population:

(Multiple Choice)

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Question 66

Which of the following occurrences would be least likely to warrant further audit attention for the auditor?

(Multiple Choice)

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Question 67

Which of the following statements is a valid criticism of nonstatistical sampling?

(Multiple Choice)

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Question 68

Sampling risk results from the auditor's failure to recognize exceptions in transaction data.

(True/False)

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Question 69

Acceptable risk of overreliance is normally lower for a public company audit than a private company audit.

(True/False)

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Question 70

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

(Multiple Choice)

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Question 71

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

(Multiple Choice)

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Question 72

When selecting a sample, random numbers may be obtained either with replacement or without replacement.Although both selection methods are theoretically sound, auditors rarely use replacement sampling.

(True/False)

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Question 73

A principal advantage of statistical methods of attributes sampling over nonstatistical methods is that they provide a scientific basis for establishing the:

(Multiple Choice)

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Question 74

If the auditor decides to assess control risk at the moderate level in a private company audit, when in previous years the auditor set control risk at the maximum level, then tests of controls for the current year would be:

(Multiple Choice)

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Question 75

The auditor must use the same TER and ARO levels for all attributes of an audit test.

(True/False)

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Question 76

Which of the following is the risk that audit tests will not uncover existing exceptions in a sample?

(Multiple Choice)

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Question 77

A danger in setting the acceptable risk of overreliance too low is:

(Multiple Choice)

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Question 78

To determine if a sample is truly representative of the population, an auditor would be required to:

(Multiple Choice)

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Question 79

In systematic sample selection, the population size is divided by the number of sample items desired in order to determine the:

(Multiple Choice)

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Question 80

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

Attributes sampling would be an appropriate method to use on which one of the following procedures in an audit program?

When audit procedures have been completed for an attributes sampling application, the auditor must generalize from the sample to the population.Which of the following statements would be incorrect regarding this process?

In nonstatistical sampling, the calculated sampling error is the difference between the tolerable exception rate and the sample exception rate.

The conjoined sample exception rate is the auditor's "best estimate" of the actual exception rate in the entire population.

Which of the following statements regarding block sampling is least likely to be true?

When defining the population:

Which of the following occurrences would be least likely to warrant further audit attention for the auditor?

Which of the following statements is a valid criticism of nonstatistical sampling?

Sampling risk results from the auditor's failure to recognize exceptions in transaction data.

Acceptable risk of overreliance is normally lower for a public company audit than a private company audit.

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

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

When selecting a sample, random numbers may be obtained either with replacement or without replacement.Although both selection methods are theoretically sound, auditors rarely use replacement sampling.

A principal advantage of statistical methods of attributes sampling over nonstatistical methods is that they provide a scientific basis for establishing the:

If the auditor decides to assess control risk at the moderate level in a private company audit, when in previous years the auditor set control risk at the maximum level, then tests of controls for the current year would be:

The auditor must use the same TER and ARO levels for all attributes of an audit test.

Which of the following is the risk that audit tests will not uncover existing exceptions in a sample?

A danger in setting the acceptable risk of overreliance too low is:

To determine if a sample is truly representative of the population, an auditor would be required to:

In systematic sample selection, the population size is divided by the number of sample items desired in order to determine the:

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

Internal Control, Control Risk, and Section 404 Audits

Fraud Auditing

The Impact of Information Technology on the Audit Process

Overall Audit Strategy and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

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, Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

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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