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

Explore all topics

When the sample exception rate (SER) exceeds the tolerable exception rate (TER), the auditor should decide whether to increase sample size or to revise assessed control risk on the basis of cost versus benefit.

(True/False)

4.7/5

(40)

Question 41

When analyzing exceptions, the auditor should keep in mind that

(Multiple Choice)

4.9/5

(34)

Question 42

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

(Multiple Choice)

4.9/5

(37)

Question 43

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

(True/False)

4.9/5

(38)

Question 44

Which of the following is a correct statement regarding probabilistic versus nonprobabilistic sample selection?

(Multiple Choice)

4.7/5

(34)

Question 45

The auditor finds material weaknesses in internal controls before year end. In these situations, the auditor must issue an adverse opinion in the audit report on internal controls, even if the auditor is able to test management's corrected controls before year-end.

(True/False)

4.8/5

(39)

Question 46

Which of the following statements is not correct regarding probabilistic and nonprobabilistic sample selection?

(Multiple Choice)

4.9/5

(39)

Question 47

A 95 percent confidence level in statistical sampling means there is more than a 5 percent sampling risk which the auditor needs to address in the sampling design.

(True/False)

4.9/5

(39)

Question 48

There is a(n) ________ relationship between acceptable risk of overreliance and planned sample size.

(Multiple Choice)

4.7/5

(39)

Question 49

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

(True/False)

4.9/5

(41)

Question 50

A sample in which the characteristics of the sample are the same as those of the population is a(n)

(Multiple Choice)

4.9/5

(35)

Question 51

The sampling unit is the physical unit that corresponds to the random numbers the auditor generates.

(True/False)

4.9/5

(36)

Question 52

Auditors who prefer statistical to nonstatistical sampling believe that the principal advantage of statistical sampling flows from its ability to

(Multiple Choice)

4.8/5

(38)

Question 53

When choosing the appropriate acceptable risk of overreliance, the auditor needs to

(Multiple Choice)

4.7/5

(38)

Question 54

Haphazard and block sampling are often used in situations where the nature of the data makes the data more difficult to use a probabilistic sampling method.

(True/False)

4.8/5

(36)

Question 55

Which of the following is an accurate statement regarding sampling?

(Multiple Choice)

4.8/5

(36)

Question 56

When deciding the acceptability of the population,

(Multiple Choice)

4.8/5

(38)

Question 57

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.

(Essay)

4.9/5

(33)

Question 58

Which is not a method used by auditors to generate random numbers?

(Multiple Choice)

4.7/5

(41)

Question 59

When generating random numbers, the random numbers must be obtained with replacement.

(True/False)

4.8/5

(35)

Question 60

Showing 41 - 60 of 151

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

When the sample exception rate (SER) exceeds the tolerable exception rate (TER), the auditor should decide whether to increase sample size or to revise assessed control risk on the basis of cost versus benefit.

When analyzing exceptions, the auditor should keep in mind that

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

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

Which of the following is a correct statement regarding probabilistic versus nonprobabilistic sample selection?

The auditor finds material weaknesses in internal controls before year end. In these situations, the auditor must issue an adverse opinion in the audit report on internal controls, even if the auditor is able to test management's corrected controls before year-end.

Which of the following statements is not correct regarding probabilistic and nonprobabilistic sample selection?

A 95 percent confidence level in statistical sampling means there is more than a 5 percent sampling risk which the auditor needs to address in the sampling design.

There is a(n) ________ relationship between acceptable risk of overreliance and planned sample size.

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

A sample in which the characteristics of the sample are the same as those of the population is a(n)

The sampling unit is the physical unit that corresponds to the random numbers the auditor generates.

Auditors who prefer statistical to nonstatistical sampling believe that the principal advantage of statistical sampling flows from its ability to

When choosing the appropriate acceptable risk of overreliance, the auditor needs to

Haphazard and block sampling are often used in situations where the nature of the data makes the data more difficult to use a probabilistic sampling method.

Which of the following is an accurate statement regarding sampling?

When deciding the acceptability of the population,

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.

Which is not a method used by auditors to generate random numbers?

When generating random numbers, the random numbers must be obtained with replacement.

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