Exam 8: Audit Sampling: An Overview and Application to Tests of Controls

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Auditors who prefer statistical to nonstatistical sampling believe that the principal advantage of statistical sampling flows from its unique ability to

(Multiple Choice)

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Question 21

Which of the following statements is correct concerning statistical sampling in compliance testing?

(Multiple Choice)

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Question 22

Audit sampling is commonly used to gather scanning audit evidence.

(True/False)

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Question 23

A Type II error is the risk of incorrect acceptance.

(True/False)

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Question 24

Why must an auditor use sampling? What tradeoffs occur when an auditor uses sampling?

(Essay)

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Question 25

If the expected deviation rate exceeds the tolerable deviation rate,the auditor is most likely to

(Multiple Choice)

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Question 26

Audit sampling is commonly used to gather confirmation audit evidence.

(True/False)

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Question 27

Which of the following best describes the distinguishing feature of statistical sampling?

(Multiple Choice)

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Question 28

The term precision relates to

(Multiple Choice)

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Question 29

An auditor is testing internal control procedures that are evidenced on an entity's vouchers.To select the vouchers for testing,the auditor obtains random numbers between the first and last voucher number in the period.If a random number matches the number of avoided voucher,that voucher ordinarily should be replaced by another voucher in the random sample if the voucher

(Multiple Choice)

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Question 30

The likelihood of assessing control risk too high is the risk that the sample selected to test controls

(Multiple Choice)

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Question 31

Which of the following risks is related to efficiency of testing?

(Multiple Choice)

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Question 32

Audit sampling is not used for which type of audit evidence?

(Multiple Choice)

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Question 33

Identify the types of audit evidence that are tested using audit sampling techniques.

(Essay)

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Question 34

An auditor who uses statistical sampling for attributes in testing internal controls is most likely to reduce the planned reliance on a prescribed control when the

(Multiple Choice)

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Question 35

Attribute sampling is used to estimate the proportion of a population that possesses a specified characteristic.

(True/False)

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Question 36

In attributes sampling,a 10% change in which of the following factors normally will have the least effect on the size of a statistical sample?

(Multiple Choice)

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Question 37

For which of the following audit tests would an auditor most likely use attributes sampling?

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Question 38

Define Type I and Type II errors.

(Essay)

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Question 39

A Type I error is the risk of incorrect acceptance.

(True/False)

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Question 40

Showing 21 - 40 of 67

Auditors who prefer statistical to nonstatistical sampling believe that the principal advantage of statistical sampling flows from its unique ability to

Which of the following statements is correct concerning statistical sampling in compliance testing?

Audit sampling is commonly used to gather scanning audit evidence.

A Type II error is the risk of incorrect acceptance.

Why must an auditor use sampling? What tradeoffs occur when an auditor uses sampling?

If the expected deviation rate exceeds the tolerable deviation rate,the auditor is most likely to

Audit sampling is commonly used to gather confirmation audit evidence.

Which of the following best describes the distinguishing feature of statistical sampling?

The term precision relates to

The likelihood of assessing control risk too high is the risk that the sample selected to test controls

Which of the following risks is related to efficiency of testing?

Audit sampling is not used for which type of audit evidence?

Identify the types of audit evidence that are tested using audit sampling techniques.

An auditor who uses statistical sampling for attributes in testing internal controls is most likely to reduce the planned reliance on a prescribed control when the

Attribute sampling is used to estimate the proportion of a population that possesses a specified characteristic.

In attributes sampling,a 10% change in which of the following factors normally will have the least effect on the size of a statistical sample?

For which of the following audit tests would an auditor most likely use attributes sampling?

Define Type I and Type II errors.

A Type I error is the risk of incorrect acceptance.

An Introduction to Assurance and Financial Statement Auditing

The Financial Statement Auditing Environment

Audit Planning, Types of Audit Tests, and Materiality

Risk Assessment

Evidence and Documentation

Internal Control in a Financial Statement Audit

Auditing Internal Control Over Financial Reporting

Audit Sampling: An Application to Substantive Tests of Account Balances

Auditing the Revenue Process

Auditing the Purchasing Process

Auditing the Human Resource Management Process

Auditing the Inventory Management Process

Auditing the Financinginvesting Process: Prepaid Expenses, Intangible Assets, and Property, Plant, and Equipment

Auditing the Financinginvesting Process: Long-Term Liabilities, Stockholders Equity, and Income Statement Accounts

Auditing the Financinginvesting Process: Cash and Investments

Completing the Audit Engagement

Reports on Audited Financial Statements

Professsional Conduct,Independence,and Quality Control

Legal Liability

Assurance,Attestation,amd Internal Auditing Services-professional Judgement Module

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