Exam 17: Overview of Sampling

A sample selection method in which a series of contiguous items are selected from the population is referred to as

In sampling,an individual makes a statement about a _____ of interest by examining a _____ (or subset)of items.

The audit team decided to reduce planned reliance on internal controls based on the results of attributes sampling.However,the actual rate of deviation in the population is lower than the tolerable rate of deviation.Which type of risk and loss is the audit team exposed to?

Why is defining the population so important in a sampling application?

Which of the following sample selection techniques can be used with statistical sampling applications?

For which of the following audit tests would an auditor most likely use attributes sampling?

The maximum rate of deviation that may exist in the operation of a control policy or procedure before the auditors would reduce reliance on internal control is referred to as

Below are some examples of methods used to select sample items.Match the sample selection method is most closely associated with the example.Each selection method is associated with only one example.

When evaluating the effectiveness of a client's internal controls with a tolerable rate of deviation of 5%,the audit team determined the upper limit rate of deviation to be 4%.Based on this information,which of the following decisions would the audit team most likely make?

Which of the following actions can be used to control the audit team's exposure to sampling risk?

In which of the following situations would the use of sampling be most appropriate?

Which of the following activities is least likely to result in the audit team's exposure to sampling risk?

All of the following are correct regarding variables sampling,except

All of the following are advantages of statistical sampling except

Which of the following statements is true about haphazard selection?

Which of the following risks expose the auditor to effectiveness losses?

Indicate the type of sampling risk involved in each of the following situations.Use the following in your answer: A. Risk of assessing control risk too high B. Risk of assessing control risk too low C. Risk of incorrect acceptance D. Risk of incorrect rejection N. No risk ___ 1. An auditor determined the adjusted sample rate of deviation to be higher than the tolerable rate of deviation. However, the rate of deviation in the population is less than the tolerable rate of deviation. ___ 2. While examining accounts payable, the sample results supported the auditor's conclusion that the accounts payable balance was correctly stated. However, the balance was materially misstated. ___ 3. An audit team used attributes sampling to evaluate a client's internal control policies regarding the physical security of inventory and determined they would need to reduce their planned reliance on internal controls. This decision is consistent with the results of evaluating the entire population. ___ 4. An auditor concluded that the upper limit on misstatement was less than the tolerable misstatement, but in reality the actual misstatement was greater than the tolerable misstatement. ___ 5. While performing an evaluation of internal controls, an auditor determined that internal controls were operating effectively. However, if the entire population had been evaluated, the auditor would have increased control risk. ___ 6. An auditor concluded that the inventory account balance was materially misstated based on the results of variables sampling. However, the balance was not materially misstated.

In performing variables sampling,the auditor will conclude that the account balance is not materially misstated if the ____ is less than or equal to ____.

Selecting the first five sales orders processed each month for examination is an example of which of the following types of selection method?

An advantage of statistical sampling over nonstatistical sampling is that statistical sampling helps an auditor to