Question 1

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 2

When evaluating an MUS sample,if the auditor finds no misstatements in the sample,the misstatement projection is zero dollars,and the total estimated misstatement will equal the projected misstatement for items in lower-stratum.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is a factor that the auditor should consider when choosing between nonstatistical and statistical sampling?

Accepted Answer

A) Whether the audit staff is adequately trained to use statistical sampling. 
B) Whether the population lends itself to a random-based selection method. 
C) Whether the auditor wants a statistical measure of the risk of drawing a wrong conclusion. 
D) All of the above.

Question 5

Which of the following statistical sampling methods is most commonly used to test control procedures?

Accepted Answer

A) Variable sampling. 
B) Ratio estimation sampling. 
C) Attributes sampling. 
D) Dollar unit sampling.

Question 6

Either nonstatistical or statistical sampling is appropriate for substantive tests of details.

Accepted Answer

A) True 
 B)False

Question 7

When determining sample size in attributes sampling,which of the following is usually true?

Accepted Answer

A) Sampling risk will be too high. 
B) Tolerable misstatement amount is determined. 
C) A failure rate is not to be expected. 
D) Population size is not a major factor.

Question 8

Blockchain is a rapidly evolving phenomenon that is useful in recording which of the following types of transactions?

Accepted Answer

A) Multi-national transactions. 
B) Digital currency transactions. 
C) Transactions requiring a high level of authorization. 
D) Related party transaction.

Question 9

Extracting data from the client's computer system is one of the tasks that can be performed by data analytics tools.

Accepted Answer

A) True 
 B)False

Question 10

Which one of the following is a decision the auditor makes when using attributes sampling?

Accepted Answer

A) The sampling unit. 
B) Period covered by testing. 
C) Completeness of the population. 
D) All of the above are auditor decisions.

Question 11

Projected misstatements are developed by extrapolation from the misstatements in sample items to the population.

Accepted Answer

A) True 
 B)False

Question 12

The audit objective of attributes sampling is to test the correctness of an account balance.

Accepted Answer

A) True 
 B)False

Question 13

The tolerable misstatement is the level of misstatement the auditor expects to detect in the population.

Accepted Answer

A) True 
 B)False

Question 14

Random number,haphazard selection,and block sampling are acceptable sample selection methods for nonstatistical sampling.

Accepted Answer

A) True 
 B)False

Question 15

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 16

Attributes sampling for testing controls should only be done by the auditor at the end of the fiscal period under audit.

Accepted Answer

A) True 
 B)False

Question 17

Simple random sampling,systematic sampling,and block sampling are acceptable sample selection methods for statistical sampling.

Accepted Answer

A) True 
 B)False

Question 18

In selecting a sample for attributes testing,haphazard selection involves which of the following approaches?

Accepted Answer

A) Each item in the population having an equal chance of selection. 
B) Every nth item being selected after a random start. 
C) An arbitrary selection with no conscious bias. 
D) Selecting all items on a day or week.

Question 19

Which of the following is a factor of nonsampling risk?

Accepted Answer

A) Not carrying out the appropriate audit procedure. 
B) Having a sample which does not represent the population. 
C) Using a random sample selection. 
D) Using nonstatistical sampling.

Question 20

Sampling risk deals with which of the following?

Accepted Answer

A) Not carrying out the appropriate audit procedure. 
B) Drawing an incorrect inference from the sample results. 
C) Inappropriately diagnosing client's problems. 
D) Both A and C.

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

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

When evaluating an MUS sample,if the auditor finds no misstatements in the sample,the misstatement projection is zero dollars,and the total estimated misstatement will equal the projected misstatement for items in lower-stratum.

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

Which of the following is a factor that the auditor should consider when choosing between nonstatistical and statistical sampling?

Which of the following statistical sampling methods is most commonly used to test control procedures?

Either nonstatistical or statistical sampling is appropriate for substantive tests of details.

When determining sample size in attributes sampling,which of the following is usually true?

Blockchain is a rapidly evolving phenomenon that is useful in recording which of the following types of transactions?

Extracting data from the client's computer system is one of the tasks that can be performed by data analytics tools.

Which one of the following is a decision the auditor makes when using attributes sampling?

Projected misstatements are developed by extrapolation from the misstatements in sample items to the population.

The audit objective of attributes sampling is to test the correctness of an account balance.

The tolerable misstatement is the level of misstatement the auditor expects to detect in the population.

Random number,haphazard selection,and block sampling are acceptable sample selection methods for nonstatistical sampling.

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

Attributes sampling for testing controls should only be done by the auditor at the end of the fiscal period under audit.

Simple random sampling,systematic sampling,and block sampling are acceptable sample selection methods for statistical sampling.

In selecting a sample for attributes testing,haphazard selection involves which of the following approaches?

Which of the following is a factor of nonsampling risk?

Sampling risk deals with which of the following?