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

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You are designing the audit plan for Mathews & Company.You are a strong proponent for statistical sampling over nonstatistical sampling.Make your case.

(Essay)

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Question 101

When the computed upper exception rate is greater than the tolerable exception rate, it is necessary for the auditor to take specific action.Which of the following courses of action would be most difficult to justify?

(Multiple Choice)

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Question 102

It is equally acceptable under professional auditing standards for auditors to use either statistical or nonstatistical sampling methods.

(True/False)

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Question 103

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 104

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 105

Which of the following statements is most correct?

(Multiple Choice)

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Question 106

Which one of the choices below is most correct regarding a cause of sampling risk?

(Multiple Choice)

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Question 107

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

(True/False)

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Question 108

Although systematic sample selection is easy to use, its primary disadvantage is that it is not a probabilistic sampling method.

(True/False)

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Question 109

One way to evaluate sampling risk when nonstatistical sampling is used is to:

(Multiple Choice)

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Question 110

When auditors wish to evaluate a sample statistically, an acceptable selection method is:

(Multiple Choice)

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Question 111

The process which requires the calculation of an interval and then selects the items based on the size of the interval is:

(Multiple Choice)

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Question 112

When analyzing exceptions, the auditor should keep in mind that:

(Multiple Choice)

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Question 113

Which of the following is the exception rate that the auditor expects to find before testing?

(Multiple Choice)

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Question 114

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 115

An auditor plans to examine a sample of 40 canceled checks for a countersignature which is prescribed in the client's control procedures manual.Two of the checks in sample cannot be located by the company or the auditor.The auditor would most likely:

(Multiple Choice)

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Question 116

In performing a review of a client's cash disbursements, an auditor uses systematic sample selection with a random start.The primary disadvantage of this technique is population items:

(Multiple Choice)

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Question 117

You are determining the appropriate sample size to test accounts receivable.What three factors are the most important to consider?

(Essay)

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Question 118

The exception rate the auditor will permit in the population and still be willing to reduce the assessed level of control risk is called the:

(Multiple Choice)

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Question 119

Showing 101 - 119 of 119

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

You are designing the audit plan for Mathews & Company.You are a strong proponent for statistical sampling over nonstatistical sampling.Make your case.

When the computed upper exception rate is greater than the tolerable exception rate, it is necessary for the auditor to take specific action.Which of the following courses of action would be most difficult to justify?

It is equally acceptable under professional auditing standards for auditors to use either statistical or nonstatistical sampling methods.

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.

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:

Which of the following statements is most correct?

Which one of the choices below is most correct regarding a cause of sampling risk?

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

Although systematic sample selection is easy to use, its primary disadvantage is that it is not a probabilistic sampling method.

One way to evaluate sampling risk when nonstatistical sampling is used is to:

When auditors wish to evaluate a sample statistically, an acceptable selection method is:

The process which requires the calculation of an interval and then selects the items based on the size of the interval is:

When analyzing exceptions, the auditor should keep in mind that:

Which of the following is the exception rate that the auditor expects to find before testing?

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.

An auditor plans to examine a sample of 40 canceled checks for a countersignature which is prescribed in the client's control procedures manual.Two of the checks in sample cannot be located by the company or the auditor.The auditor would most likely:

In performing a review of a client's cash disbursements, an auditor uses systematic sample selection with a random start.The primary disadvantage of this technique is population items:

You are determining the appropriate sample size to test accounts receivable.What three factors are the most important to consider?

The exception rate the auditor will permit in the population and still be willing to reduce the assessed level of control risk is called 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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