Exam 17: Audit Sampling for Tests of Details of Balances

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The auditor must consider the possibility that the true population misstatement is greater than the amount of misstatement that is tolerable when the auditor is performing:

(Multiple Choice)

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Question 41

Tolerable misstatement is inversely related to sample size.

(True/False)

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Question 42

Why do auditors find MUS appealing?

(Multiple Choice)

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Question 43

Acceptable risk of incorrect rejection affects auditors' action only when they conclude that a population is:

(Multiple Choice)

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Question 44

An accounts receivable population contains a total of four customers.The accounts,the amounts,and the cumulative total are shown below.Monetary unit sampling is to be used. Based on the information above,the population size is:

(Multiple Choice)

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Question 45

In estimating the population misstatement,the first step in projecting from the sample to the population is to:

(Multiple Choice)

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Question 46

The appropriate assumption to make regarding the overall percent of error in those population items containing an error is:

(Multiple Choice)

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Question 47

Which of the following conditions would lead to a larger sample size?

(Multiple Choice)

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Question 48

When making statistical inferences,the auditor must remember that:

(Multiple Choice)

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Question 49

How might auditors include negative balances when using monetary unit sampling to evaluate a population?

(Essay)

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Question 50

When defining the population and the sampling unit for tests of details of balances:

(Multiple Choice)

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Question 51

The use of monetary unit sampling is most appropriate when the auditor expects to find many errors and when a monetary result is desired.

(True/False)

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Question 52

When auditors apply MUS to a sample,the sample is selected using random sampling techniques.

(True/False)

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Question 53

The risk of incorrect rejection is important only when there is a ________ cost to increasing the sample size.

(Multiple Choice)

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Question 54

For stratified sampling,the auditor selects samples independently from each stratum.

(True/False)

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Question 55

The final step in the evaluation of the audit results is the decision to:

(Multiple Choice)

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Question 56

The method used to measure the estimated total error amount in a population when there is both a recorded value and an audited value for each item in the sample is:

(Multiple Choice)

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Question 57

Monetary unit sampling is not particularly effective at detecting:

(Multiple Choice)

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Question 58

When using monetary unit sampling,evaluating the likelihood of unrecorded items in the population is:

(Multiple Choice)

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Question 59

In monetary unit sampling,a sampling interval of 900 means that:

(Multiple Choice)

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Question 60

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Exam 17: Audit Sampling for Tests of Details of Balances

The auditor must consider the possibility that the true population misstatement is greater than the amount of misstatement that is tolerable when the auditor is performing:

Tolerable misstatement is inversely related to sample size.

Why do auditors find MUS appealing?

Acceptable risk of incorrect rejection affects auditors' action only when they conclude that a population is:

An accounts receivable population contains a total of four customers.The accounts,the amounts,and the cumulative total are shown below.Monetary unit sampling is to be used. Based on the information above,the population size is:

In estimating the population misstatement,the first step in projecting from the sample to the population is to:

The appropriate assumption to make regarding the overall percent of error in those population items containing an error is:

Which of the following conditions would lead to a larger sample size?

When making statistical inferences,the auditor must remember that:

How might auditors include negative balances when using monetary unit sampling to evaluate a population?

When defining the population and the sampling unit for tests of details of balances:

The use of monetary unit sampling is most appropriate when the auditor expects to find many errors and when a monetary result is desired.

When auditors apply MUS to a sample,the sample is selected using random sampling techniques.

The risk of incorrect rejection is important only when there is a ________ cost to increasing the sample size.

For stratified sampling,the auditor selects samples independently from each stratum.

The final step in the evaluation of the audit results is the decision to:

The method used to measure the estimated total error amount in a population when there is both a recorded value and an audited value for each item in the sample is:

Monetary unit sampling is not particularly effective at detecting:

When using monetary unit sampling,evaluating the likelihood of unrecorded items in the population is:

In monetary unit sampling,a sampling interval of 900 means that:

The Assurance Services Market

The Audit Standards Setting Process

Audit Reports

Legal Liability Considerations for Auditors

Ethics and the Audit Profession

Audit Responsibilities and Objectives

Nature and Type of Audit Evidence

Audit Planning

Considering Materiality and Audit Risk

Considering Internal Control

Considering the Risk of Fraud

Implications of Information Technology for the Audit Process

Developing the Overall Audit Plan and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

Audit of the Inventory and Warehousing Cycle

Audit of the Payroll and Personnel Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Audit Completion

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

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