Question 1

Which of the following is not a part of analytical procedures?

Accepted Answer

A) System Analysis 
B) Economic Analysis 
C) Regression Analysis 
D) Predictive Analysis

Question 2

This method of sampling is also called probability proportionate to size (PPS) sampling

Accepted Answer

A) Block Selection 
B) Random Sampling 
C) Stratified Sampling 
D) Monetary Unit Sampling

Question 3

When you are finding out the inventory-turnover ratio, you are doing

Accepted Answer

A) Comparison across components 
B) Comparison involving a single component 
C) Regression analysis 
D) Economic analysis

Question 4

For accounts prepared on cash basis, in respect of gross receipts/expenditure, materiality percentage would be

Accepted Answer

A) For very sensitive accounts - 1 %, sensitive accounts - 1% to 2% and non sensitive accounts - 5% 
B) For very sensitive accounts - 1/2 %, sensitive accounts - 1/2% to 2% and non sensitive accounts - 2% 
C) For very sensitive accounts - 2 %, sensitive accounts - 5% and non sensitive accounts - 8% 
D) none of these

Question 5

Sampling interval is calculated in this kind of sampling

Accepted Answer

A) Simple Random Sampling 
B) Systematic Sampling 
C) Stratified Sampling 
D) All of the above

Exam 2: Auditing and Sampling Techniques

Which of the following is not a part of analytical procedures?

This method of sampling is also called probability proportionate to size (PPS) sampling

When you are finding out the inventory-turnover ratio, you are doing

For accounts prepared on cash basis, in respect of gross receipts/expenditure, materiality percentage would be

Sampling interval is calculated in this kind of sampling