Question 1

If a customer's account was recorded at $45,000,the audited value was $30,000,and the sampling interval was $30,000,the projected misstatement would be

Accepted Answer

A)  $10,000. 
B)  $15,000. 
C)  $20,000. 
D)  $30,000. 
A)  $10,000. 
B)  $15,000. 
C)  $20,000. 
D)  $30,000.

Question 2

What is the projected misstatement?

Accepted Answer

A)  $5,000 
B)  $10,000 
C)  $15,000 
D)  $30,000 
A)  $5,000 
B)  $10,000 
C)  $15,000 
D)  $30,000

Question 3

Which of the following would be the most likely situation in which an auditor would use variables sampling?

Accepted Answer

A)  Comparing the recorded balance in accounts receivable to expected balances or prior-years' balances 
B)  Selecting customer balances in accounts receivable for confirmation 
C)  Evaluating sales invoices for evidence of authorization by client personnel 
D)  Mathematically evaluating the client's provision for the allowance for doubtful accounts 
A)  Comparing the recorded balance in accounts receivable to expected balances or prior-years' balances 
B)  Selecting customer balances in accounts receivable for confirmation 
C)  Evaluating sales invoices for evidence of authorization by client personnel 
D)  Mathematically evaluating the client's provision for the allowance for doubtful accounts

Question 4

Solo,CPA,performed a nonstatistical sampling plan to examine the inventory balances of Hope Inc.,and estimated the account balance by projecting the misstatement based on the number of items examined.In selecting her sample of 70 items,she used an expected misstatement of $40,000 and a tolerable misstatement of $65,000.The account balance consisted of 1,050 items totaling $1,200,000.The sample recorded value was $80,000,and the audited value was $76,000.What conclusion did Solo draw regarding the account balance?

Accepted Answer

A)  Accept because the expected misstatement is less than the tolerable misstatement 
B)  Reject because the expected misstatement is greater than the expected misstatement 
C)  Accept because the expected misstatement is less than the expected misstatement 
D)  Reject because the expected misstatement is greater than the tolerable misstatement 
A)  Accept because the expected misstatement is less than the tolerable misstatement 
B)  Reject because the expected misstatement is greater than the expected misstatement 
C)  Accept because the expected misstatement is less than the expected misstatement 
D)  Reject because the expected misstatement is greater than the tolerable misstatement

Question 5

You are planning to use monetary unit sampling to evaluate accounts receivable for

Accepted Answer

@#IMG-DLM& a.Ratio of expected to tolerable missta

If a customer's account was recorded at $45,000,the audited value was $30,000,and the sampling interval was $30,000,the projected misstatement would be

What is the projected misstatement?

Which of the following would be the most likely situation in which an auditor would use variables sampling?

You are planning to use monetary unit sampling to evaluate accounts receivable for

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Audits governmental Audits and Fraud Examinations

Overview of Sampling

Attributes Sampling

Auditing and Information Technology

Filters

Exam 19: Variables Sampling

If a customer's account was recorded at $45,000,the audited value was $30,000,and the sampling interval was $30,000,the projected misstatement would be

What is the projected misstatement?

Which of the following would be the most likely situation in which an auditor would use variables sampling?

You are planning to use monetary unit sampling to evaluate accounts receivable for

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Audits governmental Audits and Fraud Examinations

Overview of Sampling

Attributes Sampling

Auditing and Information Technology

Filters