Question 1

Evaluating statistical sample results is one of the tasks that can be performed by data analytics tools.

Accepted Answer

A) True 
 B)False

Question 2

Nonsampling risk What is nonsampling risk and how can it be eliminated?

Accepted Answer

Nonsampling risk includes all aspects of

Question 3

When testing controls,the use of haphazard selection of a sample allows for random,statistical evaluation.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not one of the processes involved in data mining?

Accepted Answer

A) Data capture and cleaning. 
B) Deploying models. 
C) Data exploration. 
D) Data architecture. 
A) Data capture and cleaning. 
B) Deploying models. 
C) Data exploration. 
D) Data architecture.

Question 5

In analyzing misstatements using sampling techniques,the auditor should analyze the misstatements in what manners?

Accepted Answer

A) Qualitatively and quantitatively. 
B) Absolutely and proportionately. 
C) Haphazardly and randomly. 
D) Methodically and systematically. 
A) Qualitatively and quantitatively. 
B) Absolutely and proportionately. 
C) Haphazardly and randomly. 
D) Methodically and systematically.

Question 6

Stratification of the population into several homogeneous subpopulations generally creates audit efficiency.

Accepted Answer

A) True 
 B)False

Question 7

Which one of the following is not a typical step used to implement an attributes sampling plan?

Accepted Answer

A) Define the attributes of interest and what constitutes failure(s). 
B) Select and test the sample items. 
C) Evaluate the sample results. 
D) Define the nonstatistical sampling method that is most effective and efficient. 
A) Define the attributes of interest and what constitutes failure(s). 
B) Select and test the sample items. 
C) Evaluate the sample results. 
D) Define the nonstatistical sampling method that is most effective and efficient.

Question 8

Which of the following is not considered to be nonsampling risk?

Accepted Answer

A) Misinterpretation of information. 
B) Use of improper audit procedure. 
C) The sample does not represent the population. 
D) Carelessness of the auditor. 
A) Misinterpretation of information. 
B) Use of improper audit procedure. 
C) The sample does not represent the population. 
D) Carelessness of the auditor.

Question 9

Sampling and nonsampling risk Discuss what is meant by "sampling risk" and "nonsampling risk".

Accepted Answer

Sampling risk occurs when the sample is

Question 10

The most efficient method of testing a large population is the use of nonstatistical sampling.

Accepted Answer

A) True 
 B)False

Question 11

An attribute is defined as a characteristic of the population of interest to the auditor.

Accepted Answer

A) True 
 B)False

Question 12

When performing sampling,the auditor is most concerned with which of the following?

Accepted Answer

A) Risk of incorrect rejection. 
B) Risk of incorrect acceptance. 
C) Risk of excess sample size. 
D) Risk of errors in the population. 
A) Risk of incorrect rejection. 
B) Risk of incorrect acceptance. 
C) Risk of excess sample size. 
D) Risk of errors in the population.

Question 13

The tolerable failure rate is the level at which the control's failure to operate would cause the auditor to conclude that the control is not effective and would likely change the auditor's planned assessment of control risk in performing tests of account balances.

Accepted Answer

A) True 
 B)False

Question 14

Which one of the following is a proper course of action for the auditor when the total estimated misstatement exceeds the tolerable misstatement?

Accepted Answer

A) The auditor can ask the client to correct the known misstatements. 
B) The auditor will analyze the detected misstatements for some common problems. 
C) The auditor can expand the sample. 
D) All of the above. 
A) The auditor can ask the client to correct the known misstatements. 
B) The auditor will analyze the detected misstatements for some common problems. 
C) The auditor can expand the sample. 
D) All of the above.

Question 15

In MUS,what is meant by a sampling interval of 900?

Accepted Answer

A) Every item will be selected. 
B) Every dollar will be selected. 
C) Expected misstatement is 900. 
D) Tolerable misstatement is 900. 
A) Every item will be selected. 
B) Every dollar will be selected. 
C) Expected misstatement is 900. 
D) Tolerable misstatement is 900.

Question 16

In testing the reasonableness of an account balance,if MUS sampling cannot be used because of its limitations,what is an alternative statistical method?

Accepted Answer

A) Attribute sampling. 
B) Classical variables sampling. 
C) Discovery sampling. 
D) All of the above. 
A) Attribute sampling. 
B) Classical variables sampling. 
C) Discovery sampling. 
D) All of the above.

Question 17

MUS is based on which of following?

Accepted Answer

A) Attributes sampling. 
B) Classical variables sampling. 
C) Population variability sampling. 
D) Expected error sampling. 
A) Attributes sampling. 
B) Classical variables sampling. 
C) Population variability sampling. 
D) Expected error sampling.

Question 18

When performing substantive tests using sampling methods,the auditor's main concern is the risk of incorrect rejection.

Accepted Answer

A) True 
 B)False

Question 19

When using MUS,an auditor found that the sampling interval should be $15,755.If selecting the sample manually,the auditor should round the sample interval to which of the following amounts?

Accepted Answer

A) $16,000. 
B) $15,000. 
C) $14,000. 
D) $10,000. 
A) $16,000. 
B) $15,000. 
C) $14,000. 
D) $10,000.

Question 20

Which one of the following is not a decision the auditor makes when using attributes sampling?

Accepted Answer

A) Sample size. 
B) Selection of items included in the sample. 
C) Evaluation of sample information. 
D) Whether to document all phases of the sampling process. 
A) Sample size. 
B) Selection of items included in the sample. 
C) Evaluation of sample information. 
D) Whether to document all phases of the sampling process.

Evaluating statistical sample results is one of the tasks that can be performed by data analytics tools.

Nonsampling risk What is nonsampling risk and how can it be eliminated?

When testing controls,the use of haphazard selection of a sample allows for random,statistical evaluation.

Which of the following is not one of the processes involved in data mining?

In analyzing misstatements using sampling techniques,the auditor should analyze the misstatements in what manners?

Stratification of the population into several homogeneous subpopulations generally creates audit efficiency.

Which one of the following is not a typical step used to implement an attributes sampling plan?

Which of the following is not considered to be nonsampling risk?

Sampling and nonsampling risk Discuss what is meant by "sampling risk" and "nonsampling risk".

The most efficient method of testing a large population is the use of nonstatistical sampling.

An attribute is defined as a characteristic of the population of interest to the auditor.

When performing sampling,the auditor is most concerned with which of the following?

The tolerable failure rate is the level at which the control's failure to operate would cause the auditor to conclude that the control is not effective and would likely change the auditor's planned assessment of control risk in performing tests of account balances.

Which one of the following is a proper course of action for the auditor when the total estimated misstatement exceeds the tolerable misstatement?

In MUS,what is meant by a sampling interval of 900?

In testing the reasonableness of an account balance,if MUS sampling cannot be used because of its limitations,what is an alternative statistical method?

MUS is based on which of following?

When performing substantive tests using sampling methods,the auditor's main concern is the risk of incorrect rejection.

When using MUS,an auditor found that the sampling interval should be $15,755.If selecting the sample manually,the auditor should round the sample interval to which of the following amounts?

Which one of the following is not a decision the auditor makes when using attributes 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

Filters

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

Evaluating statistical sample results is one of the tasks that can be performed by data analytics tools.

Nonsampling risk What is nonsampling risk and how can it be eliminated?

When testing controls,the use of haphazard selection of a sample allows for random,statistical evaluation.

Which of the following is not one of the processes involved in data mining?

In analyzing misstatements using sampling techniques,the auditor should analyze the misstatements in what manners?

Stratification of the population into several homogeneous subpopulations generally creates audit efficiency.

Which one of the following is not a typical step used to implement an attributes sampling plan?

Which of the following is not considered to be nonsampling risk?

Sampling and nonsampling risk Discuss what is meant by "sampling risk" and "nonsampling risk".

The most efficient method of testing a large population is the use of nonstatistical sampling.

An attribute is defined as a characteristic of the population of interest to the auditor.

When performing sampling,the auditor is most concerned with which of the following?

The tolerable failure rate is the level at which the control's failure to operate would cause the auditor to conclude that the control is not effective and would likely change the auditor's planned assessment of control risk in performing tests of account balances.

Which one of the following is a proper course of action for the auditor when the total estimated misstatement exceeds the tolerable misstatement?

In MUS,what is meant by a sampling interval of 900?

In testing the reasonableness of an account balance,if MUS sampling cannot be used because of its limitations,what is an alternative statistical method?

MUS is based on which of following?

When performing substantive tests using sampling methods,the auditor's main concern is the risk of incorrect rejection.

When using MUS,an auditor found that the sampling interval should be $15,755.If selecting the sample manually,the auditor should round the sample interval to which of the following amounts?

Which one of the following is not a decision the auditor makes when using attributes 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

Filters