Exam 17: Overview of Sampling

Which of the following does not have a direct relationship with sample size?

Assume that the audit team wishes to determine the extent to which a particular control policy was functioning as intended.Identifying applications of the control throughout the period under audit would be most closely related to which of the following steps in sampling?

While performing an audit of accounts receivable,Allen,CPA,found that the sample results supported the conclusion that the accounts receivable balance was materially misstated.However,the balance was,in fact,not materially misstated.This situation illustrates the risk of

Which of the following types of sampling applications can appropriately be used under generally accepted auditing standards?

In each of the following situations,indicate whether attribute (A)or variables (V)sampling is used. ___ 1.Observe a sample of employees at various cash registers to ensure they log in to the system before they can begin processing transactions,and subsequently log out when their shift is over to prevent unauthorized access to the cash registers. ___ 2.Select a sample of purchase orders and ensure they are from vendors on the approved vendor list. ___ 3.Select a sample of unpaid vendor invoices and determine a projected balance for accounts payable. ___ 4.Select a sample of perishable items from inventory to see if they have exceeded their expiration date. ___ 5.Select a sample of accounts receivable transactions to determine the accuracy of the current period's bad debt expense. ___ 6.Send confirmations of the account balance for debt obligations greater than the materiality threshold.

Which of the following is not an advantage of statistical sampling?

Which of the following situations is true with respect to sampling?

An auditor is reviewing a sample of cash disbursements to ensure that the appropriate supporting documents were received prior to payment.Which type of sampling approach would the auditor use to perform this test?

What is the primary drawback with respect to the use of sampling?

Which of the following statements about audit sampling risks is correct?

Which of the following sampling activities is not performed during the planning stage of the audit?

Nonsampling risk can occur in which of the following types of sampling plans?

Tests performed by auditors that examine evidence for both control attributes and monetary misstatements are known as

In which of the following types of sampling applications is the auditor exposed to sampling risk?

Which of the following most closely represents an unrestricted random selection procedure?

Which of the following is the most likely outcome when the upper limit rate of deviation is less than the tolerable rate of deviation?

Which of the following appropriately describes the effect of sample size on sampling risk?

For each of the following situations related to determining the average weight of a National Football League player,indicate how the appropriate sample size would change by using the letter I (increase),D (decrease),or N (no change).Assume that all other factors are held constant. ___ 1.The desired level of precision changes from 20 pounds to 10 pounds. ___ 2.The sampling risk increases from 5 percent to 10 percent. ___ 3.The number of football players in the population increases from 1,400 to 1,600. ___ 4.You initially want to estimate the weight for offensive linemen only but decide to in include quarterbacks,running banks,and placekickers. ___ 5.Your initial sample estimate changes from 250 pounds to 230 pounds.

Which of the following is the least likely outcome when the upper limit on misstatement exceeds the tolerable misstatement?

An auditor discovers that an account balance believed not to be materially misstated based on an audit sample was materially misstated based on the total population of the account balance.This is an example of which of the following types of sampling risks?