Question 1

Which of the following data analytics tools might an auditor use to test the completeness assertion for sales?

Accepted Answer

A) Analyze data to assess the proper operation of sales cutoff tests around year-end. 
B) Age accounts receivable. 
C) Use data visualization tools to evaluate disclosures about sales and profitability. 
D) All of the above. 
A) Analyze data to assess the proper operation of sales cutoff tests around year-end. 
B) Age accounts receivable. 
C) Use data visualization tools to evaluate disclosures about sales and profitability. 
D) All of the above.

Question 2

In selecting a sample for attributes testing,systematic selection involves which of the following approaches?

Accepted Answer

A) Each item in the population having an equal chance of selection. 
B) Every nth item being selected after a random start. 
C) An arbitrary selection with no conscious bias. 
D) Selecting all items on a day or week. 
A) Each item in the population having an equal chance of selection. 
B) Every nth item being selected after a random start. 
C) An arbitrary selection with no conscious bias. 
D) Selecting all items on a day or week.

Question 3

Which of the following is not a type of statistical method that provides results in dollar terms?

Accepted Answer

A) Variables sampling. 
B) Attributes sampling. 
C) Monetary unit sampling. 
D) Probability proportional to size sampling. 
A) Variables sampling. 
B) Attributes sampling. 
C) Monetary unit sampling. 
D) Probability proportional to size sampling.

Question 4

Choosing sampling methods Identify the factors that an auditor would consider when choosing between nonstatistical sampling and statistical sampling.

Accepted Answer

When choosing between statistical and no

Question 5

Sample selection Before procedures using statistical or nonstatistical sampling methods begin,the auditor must determine how the sample will be selected.Discuss the various types of sample selection,when they are used and,generally,how they are used.Give examples.

Accepted Answer

Simple random selection
Simple random se

Question 6

MUS sampling has all of the following advantages over other statistical methods except which of the following?

Accepted Answer

A) Easier to apply than other statistical sampling approaches. 
B) Sample sizes are relatively small. 
C) It is a relatively easy way to make sure that negative balances and zero balances are included in the sample. 
D) Usually results in a highly efficient sample size. 
A) Easier to apply than other statistical sampling approaches. 
B) Sample sizes are relatively small. 
C) It is a relatively easy way to make sure that negative balances and zero balances are included in the sample. 
D) Usually results in a highly efficient sample size.

Question 7

In attributes sampling,which of the following does the risk of incorrect acceptance deal with?

Accepted Answer

A) Effectiveness. 
B) Efficiency. 
C) Reliability. 
D) Both A and B. 
A) Effectiveness. 
B) Efficiency. 
C) Reliability. 
D) Both A and B.

Question 8

Dividing the population into relatively homogeneous groups in order to reduce sample size is the definition of which of the following terms?

Accepted Answer

A) Ratio estimation. 
B) Difference estimation. 
C) Stratification. 
D) MUS sampling. 
A) Ratio estimation. 
B) Difference estimation. 
C) Stratification. 
D) MUS sampling.

Question 9

A sample which exceeds the tolerable rate of deviation results in the auditor's reliance on internal control effectiveness.

Accepted Answer

A) True 
 B)False

Question 10

Incorrect acceptance is directly related to which of the following?

Accepted Answer

A) The efficiency of the audit. 
B) The ineffectiveness of the audit. 
C) The cost of the audit. 
D) All of the above. 
A) The efficiency of the audit. 
B) The ineffectiveness of the audit. 
C) The cost of the audit. 
D) All of the above.

Question 11

Nonstatistical samples should be based on the same audit considerations as those used for statistical sampling.

Accepted Answer

A) True 
 B)False

Question 12

Tolerable misstatement is the maximum amount of misstatement the auditor can accept in the population without requiring an audit adjustment or a qualified audit opinion.

Accepted Answer

A) True 
 B)False

Question 13

Sampling risk is defined as the risk that an inference drawn from a sample will be incorrect.

Accepted Answer

A) True 
 B)False

Question 14

In MUS sampling basic precision is the upper misstatement limit when no misstatements are detected in a MUS sample.It is computed by multiplying the sampling interval by the error expansion factor.

Accepted Answer

A) True 
 B)False

Question 15

Statistical sampling combines the theory of probability and statistical inference with audit judgment and experience.

Accepted Answer

A) True 
 B)False

Question 16

For which of the following audit procedures would sampling be most appropriate?

Accepted Answer

A) Inquiry. 
B) Observation. 
C) Confirmation. 
D) Analytics. 
A) Inquiry. 
B) Observation. 
C) Confirmation. 
D) Analytics.

Question 17

Which of the following occurs when,based on sample results,control risk is assessed excessively high?

Accepted Answer

A) Audit inefficiency. 
B) A less expensive audit. 
C) Reduction of substantive testing. 
D) Errors that are more likely to occur than anticipated. 
A) Audit inefficiency. 
B) A less expensive audit. 
C) Reduction of substantive testing. 
D) Errors that are more likely to occur than anticipated.

Which of the following data analytics tools might an auditor use to test the completeness assertion for sales?

In selecting a sample for attributes testing,systematic selection involves which of the following approaches?

Which of the following is not a type of statistical method that provides results in dollar terms?

Choosing sampling methods Identify the factors that an auditor would consider when choosing between nonstatistical sampling and statistical sampling.

Sample selection Before procedures using statistical or nonstatistical sampling methods begin,the auditor must determine how the sample will be selected.Discuss the various types of sample selection,when they are used and,generally,how they are used.Give examples.

MUS sampling has all of the following advantages over other statistical methods except which of the following?

In attributes sampling,which of the following does the risk of incorrect acceptance deal with?

Dividing the population into relatively homogeneous groups in order to reduce sample size is the definition of which of the following terms?

A sample which exceeds the tolerable rate of deviation results in the auditor's reliance on internal control effectiveness.

Incorrect acceptance is directly related to which of the following?

Nonstatistical samples should be based on the same audit considerations as those used for statistical sampling.

Tolerable misstatement is the maximum amount of misstatement the auditor can accept in the population without requiring an audit adjustment or a qualified audit opinion.

Sampling risk is defined as the risk that an inference drawn from a sample will be incorrect.

In MUS sampling basic precision is the upper misstatement limit when no misstatements are detected in a MUS sample.It is computed by multiplying the sampling interval by the error expansion factor.

Statistical sampling combines the theory of probability and statistical inference with audit judgment and experience.

For which of the following audit procedures would sampling be most appropriate?

Which of the following occurs when,based on sample results,control risk is assessed excessively high?

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

Which of the following data analytics tools might an auditor use to test the completeness assertion for sales?

In selecting a sample for attributes testing,systematic selection involves which of the following approaches?

Which of the following is not a type of statistical method that provides results in dollar terms?

Choosing sampling methods Identify the factors that an auditor would consider when choosing between nonstatistical sampling and statistical sampling.

Sample selection Before procedures using statistical or nonstatistical sampling methods begin,the auditor must determine how the sample will be selected.Discuss the various types of sample selection,when they are used and,generally,how they are used.Give examples.

MUS sampling has all of the following advantages over other statistical methods except which of the following?

In attributes sampling,which of the following does the risk of incorrect acceptance deal with?

Dividing the population into relatively homogeneous groups in order to reduce sample size is the definition of which of the following terms?

A sample which exceeds the tolerable rate of deviation results in the auditor's reliance on internal control effectiveness.

Incorrect acceptance is directly related to which of the following?

Nonstatistical samples should be based on the same audit considerations as those used for statistical sampling.

Tolerable misstatement is the maximum amount of misstatement the auditor can accept in the population without requiring an audit adjustment or a qualified audit opinion.

Sampling risk is defined as the risk that an inference drawn from a sample will be incorrect.

In MUS sampling basic precision is the upper misstatement limit when no misstatements are detected in a MUS sample.It is computed by multiplying the sampling interval by the error expansion factor.

Statistical sampling combines the theory of probability and statistical inference with audit judgment and experience.

For which of the following audit procedures would sampling be most appropriate?

Which of the following occurs when,based on sample results,control risk is assessed excessively high?

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