Exam 19: Variables Sampling

Monetary unit sampling is most effective when the auditor is concerned with _________________________ errors (when the recorded balance is likely to exceed the audited balance).

(Short Answer)

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Question 61

If the auditor's estimate of the recorded amount of the account balance falls within the precision interval,the auditor will decide to accept the account balance as fairly recorded.

(True/False)

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Question 62

Incorrect rejection occurs when the auditor concludes that the account balance is _ when in fact it is .

(Multiple Choice)

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Question 63

Which of the following factors has a direct relationship with sample size in a variables sampling application?

(Multiple Choice)

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Question 64

The risk of _____________________________ occurs when the auditor's sample indicates the account balance is fairly stated when,in fact,it is materially misstated.

(Short Answer)

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Question 65

Which of the following is not considered in establishing the sample size in a monetary unit sampling (MUS)application?

(Multiple Choice)

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Question 66

In a monetary unit sampling (MUS)application,the auditor has a higher level of concern with the risk of incorrect acceptance than the risk of incorrect rejection.

(True/False)

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Question 67

The process of subdividing the population into more homogenous subgroups is known as ______________________________.

(Short Answer)

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Question 68

The standard deviation has an inverse relationship with sample size in a classical variables sampling application.

(True/False)

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Question 69

A primary advantage of monetary unit sampling is its tendency to select _______________________ dollar components or transactions for examination.

(Short Answer)

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Question 70

Which of the following does not represent a difference in the use of monetary unit sampling (MUS)and classical variables sampling?

(Multiple Choice)

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Question 71

__________________________ sampling methods do not allow the auditor to control the exposure to sampling risk.

(Short Answer)

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Question 72

A.Jeter,CPA,performed a nonstatistical sampling plan to examine the inventory balances of Big Apple Company and audited 200 items from a sample and found an audited value of $36,000.The sample had a recorded value of $40,000.If the entire inventory contained 3,000 items and the total recorded value of the inventory was $500,000,the estimated account balance using nonstatistical estimation and projecting the error based on number of items examined was

(Multiple Choice)

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Question 73

_______________________ sampling is used to examine a population when the auditor wants to estimate the amount (or value)of that population.

(Short Answer)

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Question 74

The risk of incorrect acceptance relates to the

(Multiple Choice)

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Question 75

When determining sample size under monetary unit sampling,an audit team does not need to make a judgment or estimate of

(Multiple Choice)

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Question 76

Why is the auditor more concerned with controlling the exposure to the risk of incorrect acceptance than with the risk of incorrect rejection?

(Multiple Choice)

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Question 77

One of the primary advantages of monetary unit sampling is the fact that

(Multiple Choice)

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Question 78

In an MUS application,the population size is equal to the _________________________________ of the account or class of transactions.

(Short Answer)

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Question 79

Variables sampling is used primarily when the auditor uses analytical procedures.

(True/False)

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Question 80

Showing 61 - 80 of 136

Monetary unit sampling is most effective when the auditor is concerned with _________________________ errors (when the recorded balance is likely to exceed the audited balance).

If the auditor's estimate of the recorded amount of the account balance falls within the precision interval,the auditor will decide to accept the account balance as fairly recorded.

Incorrect rejection occurs when the auditor concludes that the account balance is _ when in fact it is .

Which of the following factors has a direct relationship with sample size in a variables sampling application?

The risk of _____________________________ occurs when the auditor's sample indicates the account balance is fairly stated when,in fact,it is materially misstated.

Which of the following is not considered in establishing the sample size in a monetary unit sampling (MUS)application?

In a monetary unit sampling (MUS)application,the auditor has a higher level of concern with the risk of incorrect acceptance than the risk of incorrect rejection.

The process of subdividing the population into more homogenous subgroups is known as ______________________________.

The standard deviation has an inverse relationship with sample size in a classical variables sampling application.

A primary advantage of monetary unit sampling is its tendency to select _______________________ dollar components or transactions for examination.

Which of the following does not represent a difference in the use of monetary unit sampling (MUS)and classical variables sampling?

__________________________ sampling methods do not allow the auditor to control the exposure to sampling risk.

_______________________ sampling is used to examine a population when the auditor wants to estimate the amount (or value)of that population.

The risk of incorrect acceptance relates to the

When determining sample size under monetary unit sampling,an audit team does not need to make a judgment or estimate of

Why is the auditor more concerned with controlling the exposure to the risk of incorrect acceptance than with the risk of incorrect rejection?

One of the primary advantages of monetary unit sampling is the fact that

In an MUS application,the population size is equal to the _________________________________ of the account or class of transactions.

Variables sampling is used primarily when the auditor uses analytical procedures.

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Governmental and Fraud Audits

Overview of Sampling

Attributes Sampling

Auditing in a Computerized Environment

Filters

Exam 19: Variables Sampling

Monetary unit sampling is most effective when the auditor is concerned with _________________________ errors (when the recorded balance is likely to exceed the audited balance).

If the auditor's estimate of the recorded amount of the account balance falls within the precision interval,the auditor will decide to accept the account balance as fairly recorded.

Incorrect rejection occurs when the auditor concludes that the account balance is _______________________ when in fact it is ______________________.

Which of the following factors has a direct relationship with sample size in a variables sampling application?

The risk of _____________________________ occurs when the auditor's sample indicates the account balance is fairly stated when,in fact,it is materially misstated.

Which of the following is not considered in establishing the sample size in a monetary unit sampling (MUS)application?

In a monetary unit sampling (MUS)application,the auditor has a higher level of concern with the risk of incorrect acceptance than the risk of incorrect rejection.

The process of subdividing the population into more homogenous subgroups is known as ______________________________.

The standard deviation has an inverse relationship with sample size in a classical variables sampling application.

A primary advantage of monetary unit sampling is its tendency to select _______________________ dollar components or transactions for examination.

Which of the following does not represent a difference in the use of monetary unit sampling (MUS)and classical variables sampling?

__________________________ sampling methods do not allow the auditor to control the exposure to sampling risk.

_______________________ sampling is used to examine a population when the auditor wants to estimate the amount (or value)of that population.

The risk of incorrect acceptance relates to the

When determining sample size under monetary unit sampling,an audit team does not need to make a judgment or estimate of

Why is the auditor more concerned with controlling the exposure to the risk of incorrect acceptance than with the risk of incorrect rejection?

One of the primary advantages of monetary unit sampling is the fact that

In an MUS application,the population size is equal to the _________________________________ of the account or class of transactions.

Variables sampling is used primarily when the auditor uses analytical procedures.

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Governmental and Fraud Audits

Overview of Sampling

Attributes Sampling

Auditing in a Computerized Environment

Filters

Incorrect rejection occurs when the auditor concludes that the account balance is _ when in fact it is .