Exam 15: Audit Sampling for Tests of Controls and Substantive Tests of Transactions

If the auditor decides to assess control risk at the moderate level in a private company audit, when in previous years the auditor set control risk at the maximum level, then tests of controls for the current year would be:

Which of the following statements is a valid criticism of non-statistical sampling?

The tolerable rate of exceptions for tests of controls is generally:

Which of the following is the exception rate that the auditor expects to find before testing?

Which of the following statements is most correct?

Auditors who prefer statistical to nonstatistical sampling believe that the principal advantage of statistical sampling flows from its ability to:

In using sampling distribution for attributes, which one of the following must be known to evaluate the sample results?

The higher the assessed control risk, the lower will be the acceptable risk of assessing control risk too low.

When the auditor decides to select less than 100 percent of the population for testing, the auditor is said to use:

For which of the following audit procedures would audit sampling not be appropriate?

Which of the following statement is most correct with concerning the quantification of sampling risk?

Which of the following statements is most correct with respect to the evaluation of non-probabilistic sample results?

Which of the following results in a larger sample size?

The conjoined sample exception rate is the auditor's "best estimate" of the actual exception rate in the entire population.

The advantage of systematic sample selection is that:

Briefly explain why auditors utilize audit sampling.

Rodgers CPA believes that the rate of client billing errors is 4% and has established a tolerable deviation rate of 6%. In auditing client invoices Rodgers should use:

The use of haphazard sample selection is encouraged under professional auditing standards.

Which of the following occurrences would be least likely to warrant further audit attention for the auditor?

In attributes sampling, an estimate of the expected population exception rate is necessary to plan the sample size. The relationship of expected population exception rate (EPER) to sample size is: