Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Evaluating statistical sample results is one of the task performed by GAAS.

Accepted Answer

A) True 
 B)False

Question 3

The use of haphazard selection of a sample allows for random,statistical evaluation.

Accepted Answer

A) True 
 B)False

Question 4

The sample size decreases as the allowance for sampling error decreases.

Accepted Answer

A) True 
 B)False

Question 5

The probability proportional to size sampling is designed to test for

Accepted Answer

A) overstatements. 
B) understatements. 
C) neither understatements nor overstatements. 
D) either understatements or overstatements. 
A) overstatements. 
B) understatements. 
C) neither understatements nor overstatements. 
D) either understatements or overstatements.

Question 6

The auditor's risk of concluding that the book value of inventory is correct when it is materially misstated is the risk of

Accepted Answer

A) incorrect rejection. 
B) incorrect acceptance. 
C) insufficient sample size. 
D) none of the above. 
A) incorrect rejection. 
B) incorrect acceptance. 
C) insufficient sample size. 
D) none of the above.

Question 7

Using Attribute Sampling the auditor normally tests for multiple attributes using the same source documents.

Accepted Answer

A) True 
 B)False

Question 8

A major disadvantage of MUS sampling is which of the following?

Accepted Answer

A) Sample selection is relatively easy. 
B) Sample sizes are relatively small. 
C) It is difficult to test for understatement. 
D) It directly controls for the risk of incorrect acceptance. 
A) Sample selection is relatively easy. 
B) Sample sizes are relatively small. 
C) It is difficult to test for understatement. 
D) It directly controls for the risk of incorrect acceptance.

Question 9

Classical methods of sampling are relatively easier to use than is MUS sampling.

Accepted Answer

A) True 
 B)False

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

Nonstatistical sampling
Describe nonstatistical sampling and how it is used by the auditor.

Accepted Answer

Nonstatistical sampling is based on the

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Haphazard sampling is an acceptable method of sampling provided the auditor believes the sample to be

Accepted Answer

A) statistically sound. 
B) representative of the population. 
C) representative of the sample. 
D) in the upper stratum. 
A) statistically sound. 
B) representative of the population. 
C) representative of the sample. 
D) in the upper stratum.

Question 14

The classical sampling methods include difference estimation,ratio estimation,and mean-per-unit sampling.

Accepted Answer

A) True 
 B)False

Question 15

MUS calculation
Present the formula for the sample interval when using MUS sampling and identify each component of the formula.

Accepted Answer

The fixed interval approach fo

Question 16

Monetary unit sampling (MUS)is a widely used statistical sampling method because it results in an efficient sample size and concentrates on the dollar value of the account balances.

Accepted Answer

A) True 
 B)False

Question 17

The statistical sampling method most commonly used to test control procedures is

Accepted Answer

A) variable sampling. 
B) ratio estimation sampling. 
C) attribute estimation sampling. 
D) dollar unit sampling. 
A) variable sampling. 
B) ratio estimation sampling. 
C) attribute estimation sampling. 
D) dollar unit sampling.

Question 18

Which of the following task is not performed by Generalized audit software?

Accepted Answer

A) Footing a file 
B) Evaluating statistical sample results 
C) Checking for gaps in processing sequences 
D) Preparing custom reports 
E) All of the above task are performed 
A) Footing a file 
B) Evaluating statistical sample results 
C) Checking for gaps in processing sequences 
D) Preparing custom reports 
E) All of the above task are performed

Question 19

In testing for 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) mean-per-unit sampling. 
C) discovery sampling. 
D) all of the above. 
A) attribute sampling. 
B) mean-per-unit sampling. 
C) discovery sampling. 
D) all of the above.

Question 20

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

Accepted Answer

A) True 
 B)False

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

Evaluating statistical sample results is one of the task performed by GAAS.

The use of haphazard selection of a sample allows for random,statistical evaluation.

The sample size decreases as the allowance for sampling error decreases.

The probability proportional to size sampling is designed to test for

The auditor's risk of concluding that the book value of inventory is correct when it is materially misstated is the risk of

Using Attribute Sampling the auditor normally tests for multiple attributes using the same source documents.

A major disadvantage of MUS sampling is which of the following?

Classical methods of sampling are relatively easier to use than is MUS sampling.

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

Nonstatistical sampling Describe nonstatistical sampling and how it is used by the auditor.

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

Haphazard sampling is an acceptable method of sampling provided the auditor believes the sample to be

The classical sampling methods include difference estimation,ratio estimation,and mean-per-unit sampling.

MUS calculation Present the formula for the sample interval when using MUS sampling and identify each component of the formula.

Monetary unit sampling (MUS)is a widely used statistical sampling method because it results in an efficient sample size and concentrates on the dollar value of the account balances.

The statistical sampling method most commonly used to test control procedures is

Which of the following task is not performed by Generalized audit software?

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

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

Auditing: Integral to the Economy

Corporate Governance and Audits

Judgmental and Ethical Decision-Making Frameworks and Associated Professional Standards

Audit Risk,business Risk,and Audit Planning

Internal Control Over Financial Reporting

Performing an Integrated Audit

A Framework for Audit Evidence

Auditing for Fraud

Auditing Revenue and Related Accounts

Audit of Acquisition and Payment Cycle and Inventory

Audit of Cash and Other Liquid Assets

Audit of Long-Lived Assets and Related Expense Accounts

Audit of Longer-Term Liabilities, equity, acquisitions, and Related-Entity Transactions, long-Term Liabilities, and Equity

Ensuring Audit Quality in Completing the Audit

Auditors Reports

Professional Liability

Advanced Topics Concerning Complex Audit Judgments

Filters

Exam 8: Tools Used in Gathering Audit Evidence

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

Evaluating statistical sample results is one of the task performed by GAAS.

The use of haphazard selection of a sample allows for random,statistical evaluation.

The sample size decreases as the allowance for sampling error decreases.

The probability proportional to size sampling is designed to test for

The auditor's risk of concluding that the book value of inventory is correct when it is materially misstated is the risk of

Using Attribute Sampling the auditor normally tests for multiple attributes using the same source documents.

A major disadvantage of MUS sampling is which of the following?

Classical methods of sampling are relatively easier to use than is MUS sampling.

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

Nonstatistical sampling Describe nonstatistical sampling and how it is used by the auditor.

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

Haphazard sampling is an acceptable method of sampling provided the auditor believes the sample to be

The classical sampling methods include difference estimation,ratio estimation,and mean-per-unit sampling.

MUS calculation Present the formula for the sample interval when using MUS sampling and identify each component of the formula.

Monetary unit sampling (MUS)is a widely used statistical sampling method because it results in an efficient sample size and concentrates on the dollar value of the account balances.

The statistical sampling method most commonly used to test control procedures is

Which of the following task is not performed by Generalized audit software?

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

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

Auditing: Integral to the Economy

Corporate Governance and Audits

Judgmental and Ethical Decision-Making Frameworks and Associated Professional Standards

Audit Risk,business Risk,and Audit Planning

Internal Control Over Financial Reporting

Performing an Integrated Audit

A Framework for Audit Evidence

Auditing for Fraud

Auditing Revenue and Related Accounts

Audit of Acquisition and Payment Cycle and Inventory

Audit of Cash and Other Liquid Assets

Audit of Long-Lived Assets and Related Expense Accounts

Audit of Longer-Term Liabilities, equity, acquisitions, and Related-Entity Transactions, long-Term Liabilities, and Equity

Ensuring Audit Quality in Completing the Audit

Auditors Reports

Professional Liability

Advanced Topics Concerning Complex Audit Judgments

Filters