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

The expected population deviation rate is the auditor's best estimate of the percentage of transactions processed for which a control is not effectively applied.

(True/False)

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Question 61

The results of MUS sampling will be unacceptable when the total estimated misstatement exceeds which of the following?

(Multiple Choice)

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Question 62

Nonstatistical sampling Describe nonstatistical sampling for tests of account balances and how it is used by the auditor.

(Essay)

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Question 63

An example of attributes testing involves obtaining evidence that the client has matched the vendor invoice details with a purchase order and receiving report before payment approval.

(True/False)

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Question 64

Using MUS sampling Describe MUS sampling and identify the conditions that would cause an auditor to choose to use MUS sampling.

(Essay)

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Question 65

Discuss the advantages of monetary unit sampling over other sampling methods.

(Essay)

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Question 66

Sample size varies directly with sampling risk.

(True/False)

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Question 67

When an auditor uses MUS and analyzes misstatements in the lower stratum,which of the following will be multiplied by the sampling interval to calculate the projected misstatement for each misstated item?

(Multiple Choice)

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Question 68

Which of the following are limitations of using the MUS sampling method?

(Multiple Choice)

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Question 69

Which of the following is not considered when obtaining audit evidence through sampling?

(Multiple Choice)

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Question 70

Population items with a zero balance have the same chance of being chosen as those with dollar balances when using MUS sampling.

(True/False)

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Question 71

When confirming receivables in testing for overstatements,assume that there are few or no misstatements expected and the selection will be based on the dollar value of individual items.Which of the following is the auditor most likely to use?

(Multiple Choice)

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Question 72

Planning and documentation of an attributes sampling plan What are the steps to implement an attributes sampling plan?

(Essay)

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Question 73

Which of the following is a disadvantage of MUS sampling?

(Multiple Choice)

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Question 74

Sampling factors List the four important decisions an auditor must make when deciding to use sampling.

(Essay)

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Question 75

While auditors may use either statistical or nonstatistical sampling,some auditors restrict the use of nonstatistical sampling for what reason?

(Multiple Choice)

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Question 76

Statistical sampling used in control testing eliminates the need for evaluation of errors from a qualitative perspective.

(True/False)

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Question 77

Increasing the expected failure rate will cause the sample size to increase.

(True/False)

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Question 78

When performing attributes sampling,which of the following varies directly with the sample size?

(Multiple Choice)

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Question 79

Upper Misstatement Limit When evaluating the MUS sample results,the auditor calculates the total estimated misstatement in the account balance based on the sampling process.Describe the four components that make up this total.

(Essay)

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Question 80

Showing 61 - 80 of 117

The expected population deviation rate is the auditor's best estimate of the percentage of transactions processed for which a control is not effectively applied.

The results of MUS sampling will be unacceptable when the total estimated misstatement exceeds which of the following?

Nonstatistical sampling Describe nonstatistical sampling for tests of account balances and how it is used by the auditor.

An example of attributes testing involves obtaining evidence that the client has matched the vendor invoice details with a purchase order and receiving report before payment approval.

Using MUS sampling Describe MUS sampling and identify the conditions that would cause an auditor to choose to use MUS sampling.

Discuss the advantages of monetary unit sampling over other sampling methods.

Sample size varies directly with sampling risk.

When an auditor uses MUS and analyzes misstatements in the lower stratum,which of the following will be multiplied by the sampling interval to calculate the projected misstatement for each misstated item?

Which of the following are limitations of using the MUS sampling method?

Which of the following is not considered when obtaining audit evidence through sampling?

Population items with a zero balance have the same chance of being chosen as those with dollar balances when using MUS sampling.

When confirming receivables in testing for overstatements,assume that there are few or no misstatements expected and the selection will be based on the dollar value of individual items.Which of the following is the auditor most likely to use?

Planning and documentation of an attributes sampling plan What are the steps to implement an attributes sampling plan?

Which of the following is a disadvantage of MUS sampling?

Sampling factors List the four important decisions an auditor must make when deciding to use sampling.

While auditors may use either statistical or nonstatistical sampling,some auditors restrict the use of nonstatistical sampling for what reason?

Statistical sampling used in control testing eliminates the need for evaluation of errors from a qualitative perspective.

Increasing the expected failure rate will cause the sample size to increase.

When performing attributes sampling,which of the following varies directly with the sample size?

Upper Misstatement Limit When evaluating the MUS sample results,the auditor calculates the total estimated misstatement in the account balance based on the sampling process.Describe the four components that make up this total.

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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