Exam 17: Overview of Sampling

While performing an audit of accounts payable,Clayton,CPA,is using variables sampling to determine the audited value of the account based on selected purchase orders.Which of the following options is most likely to reduce the necessary sample size?

Which of the following allow the auditor to limit the exposure to sampling risk?

The upper limit on misstatement is

An auditor using variables sampling to perform substantive procedures concludes that the account balance is misstated.This conclusion is the result of which of the following?

For each of the following statements,indicate whether it is more closely related to attributes sampling or variables sampling by using the letter A (attributes)and V (variables). ___ 1.Used to allow the auditor to assess risk of material misstatement. ___ 2.Sampling risks include the risk of incorrect acceptance and risk of incorrect rejection. ___ 3.The population variability affects the sample size. ___ 4.The auditor's sample would include transactions or components comprising the account balance. ___ 5.Sampling risks include the risk of assessing control risk too high and the risk of assessing control risk too low. ___ 6.The auditor's sample would include potential applications of control policies and procedures. ___ 7.This type of sampling is influenced by the auditor's acceptable level of detection risk.

Why does the risk of incorrect rejection result in an efficiency loss to the auditor?

The method of sample selection in which a random starting point is selected and a fixed number of items are bypassed prior to the next item being selected is referred to as

Based on the results of attributes sampling,the audit team assessed control risk too low and did not modify the nature,timing,and extent of its further audit procedures to reduce detection risk.This situation would most likely result in a(n)

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