Question 1

An attribute is defined as a characteristic of the population of interest to the auditor.

Accepted Answer

A) True 
 B)False

Question 2

Dividing the population into relatively homogeneous groups in order to reduce sample size is called

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 3

A primary difference in comparing the resulting misstatements analyzed after using statistical methods compared to those using non-statistical methods is that

Accepted Answer

A) statistical methods determine the most likely misstatement while nonstatistical methods determine misstatements by projecting the misstatement found in the sample back to the population. 
B) statistical methods determine misstatements by projecting the misstatement found in the sample back to the population while nonstatistical methods determine the most likely misstatement. 
C) statistical methods take a multiple of the estimated misstatement while nonstatistical methods use precision to determine the upper limit. 
D) statistical methods ignore any sampling error as the probabilities have compensated for them while nonstatistical methods must utilize the sampling error in the projection of the upper limit. 
A) statistical methods determine the most likely misstatement while nonstatistical methods determine misstatements by projecting the misstatement found in the sample back to the population. 
B) statistical methods determine misstatements by projecting the misstatement found in the sample back to the population while nonstatistical methods determine the most likely misstatement. 
C) statistical methods take a multiple of the estimated misstatement while nonstatistical methods use precision to determine the upper limit. 
D) statistical methods ignore any sampling error as the probabilities have compensated for them while nonstatistical methods must utilize the sampling error in the projection of the upper limit.

Question 4

MUS calculation applied
Given the following information,calculate the sampling interval and the maximum sample size for accounts receivable when there are 550 accounts and a balance of $1,750,000.

Accepted Answer

The sampling interval is equal to $33,50

Question 5

Sampling risk is the risk that

Accepted Answer

A) the sample will not contain characteristics representative of the population such that inferences made about that population will be incorrect. 
B) the population will not contain characteristics representative of the sample such that inferences made about that sample will be incorrect. 
C) Neither A nor B is correct. 
D) Both A and B are correct. 
A) the sample will not contain characteristics representative of the population such that inferences made about that population will be incorrect. 
B) the population will not contain characteristics representative of the sample such that inferences made about that sample will be incorrect. 
C) Neither A nor B is correct. 
D) Both A and B are correct.

Question 6

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

Accepted Answer

A) Easier to apply than other statistical sampling approaches. 
B) Sample sizes are relatively small. 
C) Sample size is influenced by the standard failure of the population. 
D) Usually results in a highly efficient sample size. 
E) None of the above is an advantage. 
A) Easier to apply than other statistical sampling approaches. 
B) Sample sizes are relatively small. 
C) Sample size is influenced by the standard failure of the population. 
D) Usually results in a highly efficient sample size. 
E) None of the above is an advantage.

Question 7

Risks of sampling in tests of controls
Define the following terms as they relate to sampling for tests of controls:
 1.   tolerable failure rate
2.  expected failure rate
3.   allowance for s mpling error

Accepted Answer

Tolerable failure rate is the level at w

Question 8

The tolerable failure rate is the minimum rate of control procedure failure that can occur sufficient to cause the auditor to re-assess the preliminary assessment of control risk to a higher level.

Accepted Answer

A) True 
 B)False

An attribute is defined as a characteristic of the population of interest to the auditor.

Dividing the population into relatively homogeneous groups in order to reduce sample size is called

A primary difference in comparing the resulting misstatements analyzed after using statistical methods compared to those using non-statistical methods is that

MUS calculation applied Given the following information,calculate the sampling interval and the maximum sample size for accounts receivable when there are 550 accounts and a balance of $1,750,000.

Sampling risk is the risk that

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

Risks of sampling in tests of controls Define the following terms as they relate to sampling for tests of controls: 1. tolerable failure rate 2. expected failure rate 3. allowance for s mpling error

The tolerable failure rate is the minimum rate of control procedure failure that can occur sufficient to cause the auditor to re-assess the preliminary assessment of control risk to a higher level.

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

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Exam 8: Tools Used in Gathering Audit Evidence

An attribute is defined as a characteristic of the population of interest to the auditor.

Dividing the population into relatively homogeneous groups in order to reduce sample size is called

A primary difference in comparing the resulting misstatements analyzed after using statistical methods compared to those using non-statistical methods is that

MUS calculation applied Given the following information,calculate the sampling interval and the maximum sample size for accounts receivable when there are 550 accounts and a balance of $1,750,000.

Sampling risk is the risk that

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

Risks of sampling in tests of controls Define the following terms as they relate to sampling for tests of controls: 1. tolerable failure rate 2. expected failure rate 3. allowance for s mpling error

The tolerable failure rate is the minimum rate of control procedure failure that can occur sufficient to cause the auditor to re-assess the preliminary assessment of control risk to a higher level.

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