Question 1

Any misstatements that are not corrected by the client will be recorded as proposed audit adjustments.

Accepted Answer

A) True 
 B)False

Question 2

Tolerable misstatement is

Accepted Answer

A) a matter of professional judgment 
B) the amount of misstatement,on the basis of the auditor's professional judgment,that should be present in the account balance or class of transactions 
C) the maximum misstatement in the account balance or class of transactions that the auditor is willing to accept 
D) the level of audit risk the auditor is willing to accept 
E) both A and C
F)both B and D
G)both D and E 
A) a matter of professional judgment 
B) the amount of misstatement,on the basis of the auditor's professional judgment,that should be present in the account balance or class of transactions 
C) the maximum misstatement in the account balance or class of transactions that the auditor is willing to accept 
D) the level of audit risk the auditor is willing to accept 
E) both A and C
F)both B and D
G)both D and E

Question 3

With nonstatistical sampling,sampling risk is controlled by

Accepted Answer

A) quantifying sampling risk to keep the risk to an acceptable number 
B) quantifying control risk to keep the risk to an acceptable number 
C) selecting appropriate sample sizes 
D) taking a random sample so the sample is representative of the population 
E) evaluating sample results to consider control risk in the evaluation of the results 
A) quantifying sampling risk to keep the risk to an acceptable number 
B) quantifying control risk to keep the risk to an acceptable number 
C) selecting appropriate sample sizes 
D) taking a random sample so the sample is representative of the population 
E) evaluating sample results to consider control risk in the evaluation of the results

Question 4

When the auditor uses systematic random sampling with an individual dollar amount as the sampling unit,we refer to this method of sampling as

Accepted Answer

A) probability monetary sampling 
B) proportionate monetary sampling 
C) monetary proportionate to size sampling 
D) monetary unit sampling 
E) probability proportionate to size sampling
F)both A and B
G)both C and D
H)Both D and E 
A) probability monetary sampling 
B) proportionate monetary sampling 
C) monetary proportionate to size sampling 
D) monetary unit sampling 
E) probability proportionate to size sampling
F)both A and B
G)both C and D
H)Both D and E

Question 5

To determine whether the account balance or class of transactions is materially misstated,the auditor

Accepted Answer

A) determines the tolerable misstatement from the sample results and compares this amount to the projected misstatement allocated to the account balance or class of transactions 
B) determines the projected misstatement from the sample results and compares this amount to the tolerable misstatement allocated to the account balance or class of transactions 
C) determines the expected deviations from the sample results and compares this amount to the tolerable misstatement allocated to the account balance or class of transactions 
D) determines the actual deviations from the sample results and compares this amount to the tolerable misstatement allocated to the account balance or class of transactions 
A) determines the tolerable misstatement from the sample results and compares this amount to the projected misstatement allocated to the account balance or class of transactions 
B) determines the projected misstatement from the sample results and compares this amount to the tolerable misstatement allocated to the account balance or class of transactions 
C) determines the expected deviations from the sample results and compares this amount to the tolerable misstatement allocated to the account balance or class of transactions 
D) determines the actual deviations from the sample results and compares this amount to the tolerable misstatement allocated to the account balance or class of transactions

Question 6

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

Accepted Answer

A) determining if the misstatements are within the tolerance level 
B) determining if the misstatements are within the assurance level 
C) extrapolating misstatements from the sample to the population 
D) projecting misstatements from the sample to the population 
E) extrapolating misstatements from the population to the sample 
A) determining if the misstatements are within the tolerance level 
B) determining if the misstatements are within the assurance level 
C) extrapolating misstatements from the sample to the population 
D) projecting misstatements from the sample to the population 
E) extrapolating misstatements from the population to the sample

Question 7

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

Accepted Answer

A) determining if the misstatements are within the tolerance level 
B) determining if the misstatements are within the assurance level 
C) extrapolating misstatements from the sample to the population 
D) projecting misstatements from the sample to the population 
E) projecting misstatements from the population to the sample 
A) determining if the misstatements are within the tolerance level 
B) determining if the misstatements are within the assurance level 
C) extrapolating misstatements from the sample to the population 
D) projecting misstatements from the sample to the population 
E) projecting misstatements from the population to the sample

Question 8

If the auditor has a choice of sample size,he should consider which of the following factors in selecting the correct sample size?

Accepted Answer

A) desired level of assurance 
B) tolerable level of assurance 
C) expected misstatement 
D) stratification of the misstatements 
E) actual misstatement
F)both A and C
G)both A and E
H)both B and D 
A) desired level of assurance 
B) tolerable level of assurance 
C) expected misstatement 
D) stratification of the misstatements 
E) actual misstatement
F)both A and C
G)both A and E
H)both B and D

Question 9

Sampling methods for substantive samples include

Accepted Answer

A) skip random sampling 
B) organized sampling 
C) simple random sampling 
D) systematic random sampling 
E) haphazard random sampling
F)both A and B
G)both C and D
H)both D and E 
A) skip random sampling 
B) organized sampling 
C) simple random sampling 
D) systematic random sampling 
E) haphazard random sampling
F)both A and B
G)both C and D
H)both D and E

Question 10

Audit risk can be divided into two categories,inherent risk and control risk.

Accepted Answer

A) True 
 B)False

Question 11

To obtain the likely misstatements for the account balance or class of transactions,auditors

Accepted Answer

A) divide the known misstatement by the likely misstatement 
B) subtract the likely misstatement from the known misstatement 
C) add the known misstatement to the likely misstatement 
D) subtract the known misstatement from the likely misstatement 
E) subtract the known misstatement from the projected misstatement 
A) divide the known misstatement by the likely misstatement 
B) subtract the likely misstatement from the known misstatement 
C) add the known misstatement to the likely misstatement 
D) subtract the known misstatement from the likely misstatement 
E) subtract the known misstatement from the projected misstatement

Question 12

The risk of incorrect rejection of the account balance or class of transactions is an error that affects

Accepted Answer

A) the efficiency of the audit 
B) the effectiveness of the audit 
C) the reliability of the audit 
D) the relevance of the audit 
A) the efficiency of the audit 
B) the effectiveness of the audit 
C) the reliability of the audit 
D) the relevance of the audit

Any misstatements that are not corrected by the client will be recorded as proposed audit adjustments.

Tolerable misstatement is

With nonstatistical sampling,sampling risk is controlled by

When the auditor uses systematic random sampling with an individual dollar amount as the sampling unit,we refer to this method of sampling as

To determine whether the account balance or class of transactions is materially misstated,the auditor

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

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

If the auditor has a choice of sample size,he should consider which of the following factors in selecting the correct sample size?

Sampling methods for substantive samples include

Audit risk can be divided into two categories,inherent risk and control risk.

To obtain the likely misstatements for the account balance or class of transactions,auditors

The risk of incorrect rejection of the account balance or class of transactions is an error that affects

What Is Auditing

The Audit Planning Process: Understanding the Risk of Material Misstatement

Internal Controls

Auditing the Revenue Business Process

Audit Evidence and the Auditors Responsibility for Fraud Detection

Auditing the Acquisition and Expenditure Business Process

Auditing the Inventory Business Process

Audit Sampling: Tests of Internal Controls

Cash and Investment Business Processes

Long-Term Debt and Owners Equity Business Process

Completing the Audit

Audit Reports

The Auditing Profession Glossary

Filters

Exam 9: Audit Sampling: Substantive Tests of Details

Any misstatements that are not corrected by the client will be recorded as proposed audit adjustments.

Tolerable misstatement is

With nonstatistical sampling,sampling risk is controlled by

When the auditor uses systematic random sampling with an individual dollar amount as the sampling unit,we refer to this method of sampling as

To determine whether the account balance or class of transactions is materially misstated,the auditor

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

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

If the auditor has a choice of sample size,he should consider which of the following factors in selecting the correct sample size?

Sampling methods for substantive samples include

Audit risk can be divided into two categories,inherent risk and control risk.

To obtain the likely misstatements for the account balance or class of transactions,auditors

The risk of incorrect rejection of the account balance or class of transactions is an error that affects

What Is Auditing

The Audit Planning Process: Understanding the Risk of Material Misstatement

Internal Controls

Auditing the Revenue Business Process

Audit Evidence and the Auditors Responsibility for Fraud Detection

Auditing the Acquisition and Expenditure Business Process

Auditing the Inventory Business Process

Audit Sampling: Tests of Internal Controls

Cash and Investment Business Processes

Long-Term Debt and Owners Equity Business Process

Completing the Audit

Audit Reports

The Auditing Profession Glossary

Filters