Question 1

Which one of the following is not a typical step used to implement an attribute sampling plan?

Accepted Answer

A) Define the attributes of interest and what constitutes failure(s). 
B) Select and test the sample items. 
C) Evaluate the sample results. 
D) Define the non-statistical sampling method that is most effective and efficient.

Question 2

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

Accepted Answer

A) Footing a file. 
B) Obtaining file statistics. 
C) Checking for gaps in processing sequences. 
D) Preparing custom reports. 
E) All of the above tasks can be performed using GAS.

Question 3

When planning a test of details using MUS sampling,tolerable misstatement is usually set at what level?

Accepted Answer

A) Higher than planning materiality. 
B) Lower than planning materiality. 
C) Either higher or lower than planning materiality. 
D) The same as materiality.

Question 4

In using MUS,once the auditor has determined the sample size,which of the following is needed to determine the sampling interval?

Accepted Answer

A) Expected misstatement. 
B) Tolerable misstatement. 
C) Population size. 
D) Mean.

Question 5

When performing attribute sampling,which of the following varies directly with the sample size?

Accepted Answer

A) The expected failure rate. 
B) The tolerable failure rate. 
C) The risk of overreliance. 
D) The nonsampling risk.

Question 6

The most common statistical approaches for substantive testing are classical variables sampling and MUS.

Accepted Answer

A) True 
 B)False

Question 7

Choosing sampling methods Identify the factors that an auditor would consider when choosing between non-statistical sampling and statistical sampling.

Accepted Answer

The answer of Choosing sampling methods Identify the factors that...

Question 8

Dividing the population into relatively homogeneous groups in order to reduce sample size is the definition of which of the following terms?

Accepted Answer

A) Ratio estimation. 
B) Difference estimation. 
C) Stratification. 
D) MUS sampling.

Question 9

The population for MUS is defined as the number of dollars in the population being tested.

Accepted Answer

A) True 
 B)False

Question 10

Which one of the following accounting constraints supports the concept of audit sampling?

Accepted Answer

A) Conservatism. 
B) Materiality. 
C) Cost-benefit. 
D) Industry practice.

Question 11

While auditors may use either statistical or non-statistical sampling,some auditors restrict the use of non-statistical sampling for what reason?

Accepted Answer

A) It is less effective. 
B) It is less objective. 
C) It is less efficient. 
D) It is less risky.

Question 12

In attribute sampling,the risk of incorrect rejection deals with which of the following?

Accepted Answer

A) Effectiveness. 
B) Efficiency. 
C) Reliability. 
D) Both A and B.

Question 13

When evaluating the MUS sample results,the auditor calculates the total estimated misstatement in the account balance based on the sampling process using which of the following components?

Accepted Answer

A) Basic Precision. 
B) Projected misstatement for items in lower-stratum. 
C) Incremental Allowance for Sampling Error. 
D) All of the above.

Question 14

MUS is based on which of following?

Accepted Answer

A) Attributes sampling theory. 
B) Classical variables sampling. 
C) Both a.and b... 
D) Neither a.or b.

Question 15

Statistical sampling assists auditors in determining the sufficiency of evidence gathered.

Accepted Answer

A) True 
 B)False

Question 16

Monetary unit sampling (MUS)results in an efficient sample size and concentrates on the dollar value of the account balances.

Accepted Answer

A) True 
 B)False

Question 17

Planning and documentation of an attribute sampling plan What are the steps to implement an attribute sampling plan?

Accepted Answer

The answer of Planning and documentation of an attribute sampling...

Question 18

Which of the following is not considered to be non-sampling risk?

Accepted Answer

A) Misinterpretation of information. 
B) Use of improper audit procedure. 
C) Improper projection of results to the population. 
D) Carelessness of the auditor.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

MUS is designed to test for which of the following?

Accepted Answer

A) Overstatements. 
B) Understatements. 
C) Neither understatements nor overstatements. 
D) Either understatements or overstatements.

Exam 8: Specialized Audit Tools: Sampling and Generalized Audit Software

Which one of the following is not a typical step used to implement an attribute sampling plan?

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

When planning a test of details using MUS sampling,tolerable misstatement is usually set at what level?

In using MUS,once the auditor has determined the sample size,which of the following is needed to determine the sampling interval?

When performing attribute sampling,which of the following varies directly with the sample size?

The most common statistical approaches for substantive testing are classical variables sampling and MUS.

Choosing sampling methods Identify the factors that an auditor would consider when choosing between non-statistical sampling and statistical sampling.

Dividing the population into relatively homogeneous groups in order to reduce sample size is the definition of which of the following terms?

The population for MUS is defined as the number of dollars in the population being tested.

Which one of the following accounting constraints supports the concept of audit sampling?

While auditors may use either statistical or non-statistical sampling,some auditors restrict the use of non-statistical sampling for what reason?

In attribute sampling,the risk of incorrect rejection deals with which of the following?

When evaluating the MUS sample results,the auditor calculates the total estimated misstatement in the account balance based on the sampling process using which of the following components?

MUS is based on which of following?

Statistical sampling assists auditors in determining the sufficiency of evidence gathered.

Monetary unit sampling (MUS)results in an efficient sample size and concentrates on the dollar value of the account balances.

Planning and documentation of an attribute sampling plan What are the steps to implement an attribute sampling plan?

Which of the following is not considered to be non-sampling risk?

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

MUS is designed to test for which of the following?