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

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When performing a test of controls with respect to control over cash receipts,an auditor may use a systematic sampling technique with a start at any randomly selected item.The biggest disadvantage of this type of sampling is that the items in the population

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Question 61

Indicate which of the following audit procedures,used as tests of controls,do not involve audit sampling. 1.Observing and evaluating segregation of duties. 2.Testing of whether sales invoices are supported by authorized customer orders and shipping documents. 3.Reviewing entity's procedures for accounting for the numerical sequence of shipping documents. 4.Examining sales orders for proper credit approval. 5.Recomputing the information on copies of sales invoices. 6.Comparing the average days outstanding in accounts receivable with industry averages.

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Question 62

The computed upper deviation rate is

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Question 63

When determining the sample size of accounts receivable to test,what are three factors that are important for you to consider?

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Question 64

Auditing standards permit both statistical and nonstatistical methods of audit sampling.

(True/False)

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Question 65

To determine the sample size for a test of controls,an auditor should consider the tolerable deviation rate,the desired confidence level,and the

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Question 66

If auditors conducting attributes sampling found that the entity deviated from a prescribed control in nine of the first 10 items examined,the auditor is most likely to

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Question 67

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When performing a test of controls with respect to control over cash receipts,an auditor may use a systematic sampling technique with a start at any randomly selected item.The biggest disadvantage of this type of sampling is that the items in the population

The computed upper deviation rate is

When determining the sample size of accounts receivable to test,what are three factors that are important for you to consider?

Auditing standards permit both statistical and nonstatistical methods of audit sampling.

To determine the sample size for a test of controls,an auditor should consider the tolerable deviation rate,the desired confidence level,and the

If auditors conducting attributes sampling found that the entity deviated from a prescribed control in nine of the first 10 items examined,the auditor is most likely to

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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