Exam 9: Audit Sampling: Substantive Tests of Details

Sampling risk for substantive testing includes the risk of incorrect acceptance of the account balance or class of transactions and the risk of incorrect rejection of the account balance or class of transactions.

Which of the following is a statistical audit sampling technique that the auditor may decide to use?

Tolerable misstatement is

You are responsible for planning the audit of fixed asset additions for the BCS Corporation.Describe how you would select a sample to determine whether fixed asset additions have been recorded correctly.Prepare a sampling plan to describe how you will perform the test.The desired level of assurance is 95% (5% risk of incorrect acceptance).The ratio of estimated misstatement to tolerable misstatement is 0.05.The confidence factor is 3.31 from the table in the chapter.Tolerable misstatement is $50,000,000.The balance in the fixed asset additions account is $480,000,000.

The auditor uses sampling for substantive tests of balances and for substantive tests of transactions to determine

Sample size requirements are usually determined by statisticians in the head office of an accounting firm.

With monetary unit sampling,a random start is

We use evidence from the variables sample to arrive at a conclusion about the sample.

To evaluate the statistical sample,the auditor uses

Nonsampling risk includes

Sampling methods for substantive samples include

The population for a substantive test of transactions consists of

The items selected for examination are referred to as

Which of the following misstatements may cause the auditor to perform additional tests to determine if there are remaining misstatements in the account balance or class of transactions?

The auditor makes the decision about whether the misstatements found in a substantive test of balances sample are material after

Sampling would not be used to

With monetary unit sampling,misstatements are

With monetary unit sampling,estimating the misstatements in the population is

With monetary unit sampling

Sampling methods for substantive samples include