Question 1

When using a statistical sampling plan for a test of controls, the auditor would probably require a smaller sample if the:

Accepted Answer

A)  tolerable deviation rate decreases. 
B)  population increases. 
C)  expected deviation rate increases. 
D)  allowable risk of over-reliance increases. 
A)  tolerable deviation rate decreases. 
B)  population increases. 
C)  expected deviation rate increases. 
D)  allowable risk of over-reliance increases.

Question 2

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

Accepted Answer

A)  provide a mathematical measurement of uncertainty. 
B)  define the precision required to provide audit satisfaction. 
C)  promote a more legally defensible procedural approach. 
D)  establish conclusive audit evidence with decreased audit effort. 
A)  provide a mathematical measurement of uncertainty. 
B)  define the precision required to provide audit satisfaction. 
C)  promote a more legally defensible procedural approach. 
D)  establish conclusive audit evidence with decreased audit effort.

Question 3

An auditor is selecting a random sample of cash disbursements. One of the corresponding source documents for a selected random number is a voided cheque. The auditor should:

Accepted Answer

A)  treat the cheque as a deviation. 
B)  reduce the sample size by one. 
C)  select the cheque immediately before or after the one that corresponds to the random number. 
D)  None of the given answers. 
A)  treat the cheque as a deviation. 
B)  reduce the sample size by one. 
C)  select the cheque immediately before or after the one that corresponds to the random number. 
D)  None of the given answers.

Question 4

In audit sampling for substantive testing, a 10 per cent change in which of the following factors normally will have the least effect on the size of a statistical sample?

Accepted Answer

A)  Population size. 
B)  Tolerable deviation rate. 
C)  Expected population deviation rate. 
D)  Standard deviation. 
A)  Population size. 
B)  Tolerable deviation rate. 
C)  Expected population deviation rate. 
D)  Standard deviation.

Question 5

Maria Lee, an auditor, uses statistical sampling to test control procedures. Why does Lee use this statistical sampling technique?

Accepted Answer

A)  It reduces the use of judgment required by Lee because there are established numerical criteria for this type of testing. 
B)  It provides a means of measuring the sampling risk that results from examining only a part of the data. 
C)  It is specified by auditing standards. 
D)  It increases Lees' knowledge of the client's prescribed procedures and their limitations. 
A)  It reduces the use of judgment required by Lee because there are established numerical criteria for this type of testing. 
B)  It provides a means of measuring the sampling risk that results from examining only a part of the data. 
C)  It is specified by auditing standards. 
D)  It increases Lees' knowledge of the client's prescribed procedures and their limitations.

When using a statistical sampling plan for a test of controls, the auditor would probably require a smaller sample if the:

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

An auditor is selecting a random sample of cash disbursements. One of the corresponding source documents for a selected random number is a voided cheque. The auditor should:

In audit sampling for substantive testing, a 10 per cent change in which of the following factors normally will have the least effect on the size of a statistical sample?

Maria Lee, an auditor, uses statistical sampling to test control procedures. Why does Lee use this statistical sampling technique?

Assurance and Auditing: An Overview

The Structure of the Profession

Ethics, Independence and Corporate Governance

The Legal Liability of Auditors Part Two: Planning and Risk

Overview of Elements of the Financial Report Audit Process

Planning, Understanding the Entity and Evaluating Business Risk

Assessing Specific Business Risk

Understanding and Assessing Internal Control Part Three: Tests of Control and Tests of Details

Tests of Controls

Substantive Tests of Transactions and Balances

Completion and Review

The Auditors Reporting Obligations Part Five: Other Assurance Services

Internal Auditing

Auditing and Assurance Services in the Public Sector

Other Assurance Services and Advanced Topics

Filters

Exam 11: Audit Sampling Part Four: Completion and Communication

When using a statistical sampling plan for a test of controls, the auditor would probably require a smaller sample if the:

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

An auditor is selecting a random sample of cash disbursements. One of the corresponding source documents for a selected random number is a voided cheque. The auditor should:

In audit sampling for substantive testing, a 10 per cent change in which of the following factors normally will have the least effect on the size of a statistical sample?

Maria Lee, an auditor, uses statistical sampling to test control procedures. Why does Lee use this statistical sampling technique?

Assurance and Auditing: An Overview

The Structure of the Profession

Ethics, Independence and Corporate Governance

The Legal Liability of Auditors Part Two: Planning and Risk

Overview of Elements of the Financial Report Audit Process

Planning, Understanding the Entity and Evaluating Business Risk

Assessing Specific Business Risk

Understanding and Assessing Internal Control Part Three: Tests of Control and Tests of Details

Tests of Controls

Substantive Tests of Transactions and Balances

Completion and Review

The Auditors Reporting Obligations Part Five: Other Assurance Services

Internal Auditing

Auditing and Assurance Services in the Public Sector

Other Assurance Services and Advanced Topics

Filters