Exam 8: Specialized Audit Tools: Sampling and Generalized Audit Software

The risk of incorrect acceptance of an account balance as correct,when in fact it is not correct,bears directly on the effectiveness of an audit.

(True/False)

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Question 21

For tests of controls,the most commonly used statistical method is attributes sampling.

(True/False)

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Question 22

The auditor must define the population to which sampling relates if the auditor is to use statistical sampling for substantive tests of account balances.

(True/False)

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Question 23

Which of the following tasks is not performed by data analytics tools?

(Multiple Choice)

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Question 24

The sample size decreases as the risk of overreliance decreases.

(True/False)

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Question 25

In selecting a sample for attributes testing,block sampling involves which of the following approaches?

(Multiple Choice)

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Question 26

When evaluating the MUS sample results,the auditor calculates the total estimated misstatement in the account balance based on the sampling process using which of the following components?

(Multiple Choice)

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Question 27

Which of the following is a method of reducing nonsampling risk?

(Multiple Choice)

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Question 28

In analysis of the results of an attributes sampling plan,an auditor may determine that the sample size must be increased.

(True/False)

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Question 29

Concluding that the book value of inventory is correct when it is materially misstated is an example of which of the following risks?

(Multiple Choice)

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Question 30

Evaluating misstatements when using sampling to test account balances Explain the term "misstatement" as it applies to sampling during substantive procedures and explain how the term may be interpreted differently by different auditors.

(Essay)

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Question 31

Audit sampling is the application of an audit procedure to less than 100 percent of the items within an account balance or class of transactions for the purpose of evaluating some characteristic.

(True/False)

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Question 32

Which of the following does the design of a MUS sample not require the auditor to determine?

(Multiple Choice)

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Question 33

In sampling for substantive tests of details,the population is a group of items in an account balance that the auditor wants to test.

(True/False)

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Question 34

In attributes sampling,if the upper limit of the possible deviation rate exceeds the tolerable rate,the auditor can rely upon the control as being effective.

(True/False)

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Question 35

Statistical sampling is used when an auditor chooses to examine all purchases of equipment exceeding $1,000.00 and to test the remaining items by analytical procedures.

(True/False)

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Question 36

Application of MUS Explain why monetary unit sampling is not useful for detecting understatements.

(Essay)

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Question 37

In attributes sampling if the selected item cannot be located,the auditor should assume that the control procedure was not followed and assess that item as a failure.

(True/False)

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Question 38

When planning a test of details using MUS sampling,tolerable misstatement is usually set at what level?

(Multiple Choice)

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Question 39

Which of the following applications are incorporated into statistical sampling?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 117

The risk of incorrect acceptance of an account balance as correct,when in fact it is not correct,bears directly on the effectiveness of an audit.

For tests of controls,the most commonly used statistical method is attributes sampling.

The auditor must define the population to which sampling relates if the auditor is to use statistical sampling for substantive tests of account balances.

Which of the following tasks is not performed by data analytics tools?

The sample size decreases as the risk of overreliance decreases.

In selecting a sample for attributes testing,block sampling involves which of the following approaches?

When evaluating the MUS sample results,the auditor calculates the total estimated misstatement in the account balance based on the sampling process using which of the following components?

Which of the following is a method of reducing nonsampling risk?

In analysis of the results of an attributes sampling plan,an auditor may determine that the sample size must be increased.

Concluding that the book value of inventory is correct when it is materially misstated is an example of which of the following risks?

Evaluating misstatements when using sampling to test account balances Explain the term "misstatement" as it applies to sampling during substantive procedures and explain how the term may be interpreted differently by different auditors.

Audit sampling is the application of an audit procedure to less than 100 percent of the items within an account balance or class of transactions for the purpose of evaluating some characteristic.

Which of the following does the design of a MUS sample not require the auditor to determine?

In sampling for substantive tests of details,the population is a group of items in an account balance that the auditor wants to test.

In attributes sampling,if the upper limit of the possible deviation rate exceeds the tolerable rate,the auditor can rely upon the control as being effective.

Statistical sampling is used when an auditor chooses to examine all purchases of equipment exceeding $1,000.00 and to test the remaining items by analytical procedures.

Application of MUS Explain why monetary unit sampling is not useful for detecting understatements.

In attributes sampling if the selected item cannot be located,the auditor should assume that the control procedure was not followed and assess that item as a failure.

When planning a test of details using MUS sampling,tolerable misstatement is usually set at what level?

Which of the following applications are incorporated into statistical sampling?

Quality Auditing: Why It Matters

The Auditors Responsibilities Regarding Fraud and Mechanisms to Address Fraud: Regulation and Corporate Governance

Internal Control Over Financial Reporting: Responsibilities of Management and the External Auditor

Professional Legal Liability

Professional Auditing Standards and the Audit Opinion Formulation Process

Audit Evidence

Planning the Audit: Identifying and Responding to the Risks of Material Misstatement

Auditing the Revenue Cycle

Auditing Cash and Marketable Securities

Auditing Inventory, Goods and Services, and Accounts Payable: the Acquisition and Payment Cycle

Auditing Long-Lived Assets: Acquisition, Use, Impairment, and Disposal

Auditing Long-Term Liabilities and Stockholders Equity Transactions

Completing a Quality Audit

Audit Reports

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