Question 1

In which of the following types of sampling applications is the auditor exposed to sampling risk?

Accepted Answer

A)  Statistical sampling, yes; nonstatistical sampling, yes. 
B)  Statistical sampling, yes; nonstatistical sampling, no. 
C)  Statistical sampling, no; nonstatistical sampling, yes. 
D)  Statistical sampling, no; nonstatistical sampling, no. 
A)  Statistical sampling, yes; nonstatistical sampling, yes. 
B)  Statistical sampling, yes; nonstatistical sampling, no. 
C)  Statistical sampling, no; nonstatistical sampling, yes. 
D)  Statistical sampling, no; nonstatistical sampling, no. A

Question 2

The following are some examples of methods used to select sample items.Indicate,using the correct letter,which sample selection method is most closely associated with the example.Each selection method is associated with only one example.

Accepted Answer

The answer of The following are some examples of methods...

Question 3

The following are definitions of terms related to audit sampling.Indicate,using the correct letter,which term is most closely associated with the definition.Each term is associated with only one definition.

Accepted Answer

The answer of The following are definitions of terms related...

Question 4

In audit sampling applications,sampling risk is

Accepted Answer

A)  A characteristic of statistical sampling applications but not of nonstatistical applications. 
B)  The probability that the audit team will fail to recognize erroneous accounting in the client's documentation. 
C)  The probability that accounting misstatements will arise in transactions and enter the accounting system. 
D)  The probability that an audit team's conclusion based on a sample might be different from the conclusion based on an audit of the entire population. 
A)  A characteristic of statistical sampling applications but not of nonstatistical applications. 
B)  The probability that the audit team will fail to recognize erroneous accounting in the client's documentation. 
C)  The probability that accounting misstatements will arise in transactions and enter the accounting system. 
D)  The probability that an audit team's conclusion based on a sample might be different from the conclusion based on an audit of the entire population.

Question 5

Statistical sampling plans apply the laws of _____________________ to select sample items and evaluate sample results.

Accepted Answer

The answer of Statistical sampling plans apply the laws of...

Question 6

The risk of ___________________________________________ (or risk of overreliance)occurs when the auditor's sample results indicate that the client's internal control is functioning effectively when,in fact,it is not functioning effectively.

Accepted Answer

asse ssing

Question 7

When the auditor concludes that the account balance is not materially misstated when,in fact,it is materially misstated,the auditor has committed the:

Accepted 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. 
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.

Question 8

The likelihood that an identified precision interval contains the true (but unknown)population value is the

Accepted Answer

A)  Confidence. 
B)  Mean. 
C)  Precision. 
D)  Sampling risk. 
A)  Confidence. 
B)  Mean. 
C)  Precision. 
D)  Sampling risk.

Question 9

The type of sampling most frequently used by auditors during their study of internal control is referred to as

Accepted Answer

A)  Attributes sampling. 
B)  Control sampling. 
C)  Monetary unit sampling. 
D)  Variables sampling. 
A)  Attributes sampling. 
B)  Control sampling. 
C)  Monetary unit sampling. 
D)  Variables sampling.

Question 10

The precision interval is determined by adding and subtracting the reliability from the sample estimate.

Accepted Answer

A) True 
 B)False

Question 11

The number of items that are bypassed between selections in systematic random selection is referred to as the ____________________________.

Accepted Answer

The answer of The number of items that are bypassed...

Question 12

The ______________________ (or allowance for sampling risk)is the numeric distance from the estimated population value in which the true (but unknown)population value may lie with a given probability.

Accepted Answer

The answer of The ______________________ (or allowance for sampling risk)is...

Question 13

N.Jones,CPA,is performing a sampling application to determine the average number of patrons attending the performance of a musical on a weeknight.She randomly selects five weeknight performances during the month of May and calculates an average of 230 patrons per performance with an associated precision of 25 patrons.This precision is determined based on a confidence level of 95 percent.
A.What is Jones's exposure to sampling risk?
B.What is the precision interval associated with Jones's sample?
C.Provide an explanation of the sampling interval calculated in (b).
D.If theaters needed an average attendance of 200 patrons per weeknight to remain profitable,what would Jones's conclusion be with respect to this question?

Accepted Answer

A.The exposure to sampling risk is 5 per

Question 14

Which of the following is not a criterion for using a selection method with statistical sampling?

Accepted Answer

A)  The method provides a reasonable likelihood of selecting a representative sample. 
B)  The method allows the probability of selecting sample items to be determined. 
C)  The method specifically identifies each item in the population with a number. 
D)  The method allows the selection process to be replicated. 
A)  The method provides a reasonable likelihood of selecting a representative sample. 
B)  The method allows the probability of selecting sample items to be determined. 
C)  The method specifically identifies each item in the population with a number. 
D)  The method allows the selection process to be replicated.

Question 15

Which of the following components of the audit risk model is most closely associated with attributes sampling?

Accepted Answer

A)  Audit risk. 
B)  Control risk. 
C)  Detection risk. 
D)  Inherent risk. 
A)  Audit risk. 
B)  Control risk. 
C)  Detection risk. 
D)  Inherent risk.

Question 16

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

Accepted Answer

A)  Tolerable misstatement, yes; expected error, yes. 
B)  Tolerable misstatement, yes; expected error, no. 
C)  Tolerable misstatement, no; expected error, yes. 
D)  Tolerable misstatement, no; expected error, no. 
A)  Tolerable misstatement, yes; expected error, yes. 
B)  Tolerable misstatement, yes; expected error, no. 
C)  Tolerable misstatement, no; expected error, yes. 
D)  Tolerable misstatement, no; expected error, no.

Question 17

The type of sampling most frequently used by the auditors during their substantive procedures is referred to as

Accepted Answer

A)  Account balance sampling. 
B)  Attributes sampling. 
C)  Item sampling. 
D)  Variables sampling. 
A)  Account balance sampling. 
B)  Attributes sampling. 
C)  Item sampling. 
D)  Variables sampling.

Question 18

The primary cause of sampling risk is the selection of a(n)____________________ sample.

Accepted Answer

The answer of The primary cause of sampling risk is...

Question 19

For each of the following statements,indicate whether it is more closely related to attributes sampling or variables sampling by using the letters 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.

Accepted Answer

1.A,2.V,3.

Question 20

C.Fishkin,CPA,is attempting to determine whether the average height of a player on a basketball team is more than 80 inches.Based on his sample of basketball players,he determined an estimate of 76 inches with an associated precision of 10 inches.The confidence in this estimate is 90 percent.
A.What is the precision interval associated with Fishkin's sample?
B.Based on this sampling interval,what is Fishkin's conclusion?
C.If Fishkin wanted a higher level of confidence in his sample estimate,would the precision be more or less than 10 inches?

Accepted Answer

A.The precision interval is 66 inches to

In which of the following types of sampling applications is the auditor exposed to sampling risk?

The following are some examples of methods used to select sample items.Indicate,using the correct letter,which sample selection method is most closely associated with the example.Each selection method is associated with only one example.

The following are definitions of terms related to audit sampling.Indicate,using the correct letter,which term is most closely associated with the definition.Each term is associated with only one definition.

In audit sampling applications,sampling risk is

Statistical sampling plans apply the laws of _____________________ to select sample items and evaluate sample results.

The risk of ___________________________________________ (or risk of overreliance)occurs when the auditor's sample results indicate that the client's internal control is functioning effectively when,in fact,it is not functioning effectively.

When the auditor concludes that the account balance is not materially misstated when,in fact,it is materially misstated,the auditor has committed the:

The likelihood that an identified precision interval contains the true (but unknown)population value is the

The type of sampling most frequently used by auditors during their study of internal control is referred to as

The precision interval is determined by adding and subtracting the reliability from the sample estimate.

The number of items that are bypassed between selections in systematic random selection is referred to as the ____________________________.

The ______________________ (or allowance for sampling risk)is the numeric distance from the estimated population value in which the true (but unknown)population value may lie with a given probability.

Which of the following is not a criterion for using a selection method with statistical sampling?

Which of the following components of the audit risk model is most closely associated with attributes sampling?

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

The type of sampling most frequently used by the auditors during their substantive procedures is referred to as

The primary cause of sampling risk is the selection of a(n)____________________ sample.

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

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

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Exam 17: Overview of Sampling

In which of the following types of sampling applications is the auditor exposed to sampling risk?

The following are some examples of methods used to select sample items.Indicate,using the correct letter,which sample selection method is most closely associated with the example.Each selection method is associated with only one example.

The following are definitions of terms related to audit sampling.Indicate,using the correct letter,which term is most closely associated with the definition.Each term is associated with only one definition.

In audit sampling applications,sampling risk is

Statistical sampling plans apply the laws of _____________________ to select sample items and evaluate sample results.

The risk of ___________________________________________ (or risk of overreliance)occurs when the auditor's sample results indicate that the client's internal control is functioning effectively when,in fact,it is not functioning effectively.

When the auditor concludes that the account balance is not materially misstated when,in fact,it is materially misstated,the auditor has committed the:

The likelihood that an identified precision interval contains the true (but unknown)population value is the

The type of sampling most frequently used by auditors during their study of internal control is referred to as

The precision interval is determined by adding and subtracting the reliability from the sample estimate.

The number of items that are bypassed between selections in systematic random selection is referred to as the ____________________________.

The ______________________ (or allowance for sampling risk)is the numeric distance from the estimated population value in which the true (but unknown)population value may lie with a given probability.

Which of the following is not a criterion for using a selection method with statistical sampling?

Which of the following components of the audit risk model is most closely associated with attributes sampling?

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

The type of sampling most frequently used by the auditors during their substantive procedures is referred to as

The primary cause of sampling risk is the selection of a(n)____________________ sample.

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

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

Filters