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

Explore all topics

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

(Essay)

4.8/5

(43)

Question 21

In practice, auditors do not know whether a sample is representative, even after all testing is complete.

(True/False)

4.9/5

(37)

Question 22

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

(Multiple Choice)

4.8/5

(45)

Question 23

The upper limit of the probable population exception rate is the

(Multiple Choice)

5.0/5

(39)

Question 24

The advantage of systematic sample selection is that

(Multiple Choice)

4.8/5

(40)

Question 25

List the three phases in audit sampling for both statistical and nonstatistical sampling.

(Essay)

4.9/5

(33)

Question 26

The relationship of tolerable exception rate (TER) to sample size is

(Multiple Choice)

4.8/5

(35)

Question 27

Statistical sampling eliminates any professional judgment for the auditor.

(True/False)

5.0/5

(32)

Question 28

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)

4.9/5

(36)

Question 29

A representative sample means the sampled items are similar to the items not sampled.

(True/False)

4.8/5

(39)

Question 30

The auditor focuses on the lower limit of the interval estimate, which is called the estimated computed lower exception rate (CLER) in tests of controls and substantive tests of transactions.

(True/False)

4.8/5

(43)

Question 31

Auditors prefer to use probabilistic sample selection methods for nonstatistical sample applications involving tests of controls and substantive tests of transactions to improve the likelihood of selecting a representative sample.

(True/False)

4.8/5

(31)

Question 32

Auditors base their statistical inferences on sampling distributions.

(True/False)

4.9/5

(39)

Question 33

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)

4.8/5

(32)

Question 34

Which of the following is most correct when using audit sampling for exception rates?

(Multiple Choice)

4.9/5

(45)

Question 35

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

(Multiple Choice)

4.8/5

(34)

Question 36

When planning the audit sample, the ________ is (are) those items about which the auditor wishes to generalize.

(Multiple Choice)

4.8/5

(35)

Question 37

If an auditor does a test in the wrong direction, sampling risk will increase.

(True/False)

4.8/5

(38)

Question 38

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)

4.7/5

(34)

Question 39

Which of the following methods of sample selection is appropriately used when selecting a random sample?

(Multiple Choice)

4.8/5

(38)

Question 40

Showing 21 - 40 of 151

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.

In practice, auditors do not know whether a sample is representative, even after all testing is complete.

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

The upper limit of the probable population exception rate is the

The advantage of systematic sample selection is that

List the three phases in audit sampling for both statistical and nonstatistical sampling.

The relationship of tolerable exception rate (TER) to sample size is

Statistical sampling eliminates any professional judgment for the auditor.

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.

A representative sample means the sampled items are similar to the items not sampled.

The auditor focuses on the lower limit of the interval estimate, which is called the estimated computed lower exception rate (CLER) in tests of controls and substantive tests of transactions.

Auditors prefer to use probabilistic sample selection methods for nonstatistical sample applications involving tests of controls and substantive tests of transactions to improve the likelihood of selecting a representative sample.

Auditors base their statistical inferences on sampling distributions.

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.

Which of the following is most correct when using audit sampling for exception rates?

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

When planning the audit sample, the ________ is (are) those items about which the auditor wishes to generalize.

If an auditor does a test in the wrong direction, sampling risk will increase.

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.

Which of the following methods of sample selection is appropriately used when selecting a random sample?

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 Materiality

Assessing the Risk of Material Misstatement

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, 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

Filters