Exam 15: Audit Sampling for Tests of Controls and Substantive Tests of Transactions

When the sample exception rate is greater than the tolerable exception rate in attributes sampling,one possible appropriate course of action is to increase sample size.

There are three phases in both statistical and nonstatistical sampling.The first phase is to:

The acceptable risk of overreliance:

Nonprobabilistic selection methods are not based on mathematical probabilities; therefore:

A sample in which every possible combination of items in the population has an equal chance of constituting the sample is a:

Which of the following statements is most correct with respect to the evaluation of nonprobabilistic sample results?

The process which requires the calculation of an interval and then selects the items based on the size of the interval is:

Discuss what is meant by "sampling risk" and "nonsampling risk."

When defining the population:

The exception rate the auditor will permit in the population and still be willing to reduce the assessed level of control risk is called the:

Which of the following statements is correct when dealing with sampling for exception rates?

An auditor plans to examine a sample of 40 canceled checks for a countersignature which is prescribed in the client's control procedures manual.Two of the checks in sample cannot be located by the company or the auditor.The auditor would most likely:

The relationship of tolerable exception rate (TER)to sample size is:

In attributes sampling,an estimate of the expected population exception rate is necessary to plan the sample size.The relationship of expected population exception rate (EPER)to sample size is:

When the auditor decides to select less than 100 percent of the population for testing,the auditor is said to use:

Which of the following occurrences would be least likely to warrant further audit attention for the auditor?

The risk which the auditor is willing to take in accepting a control as being effective when the true population exception rate is greater than a tolerable rate is the:

Which of the following statements is most correct with concerning the quantification of sampling risk?

When selecting a sample,random numbers may be obtained either with replacement or without replacement.Although both selection methods are theoretically sound,auditors rarely use replacement sampling.

Which one of the choices below is most correct regarding a cause of sampling risk?