An accounts receivable population contains a total of 4 customers.The accounts, amounts, and cumulative total are shown in the following table: $\begin{array}{ccc} \text { Account Number } & \text { Recorded Amount } & \text { Cumulative Total } \\ \hline \text { Blue } & \$ 357 & \$ 357 \\ \hline \text { Brown } & 281 & 638 \\ \hline \text { Grey } & 60 & 698 \\ \hline \text { Green } & 574 & 1272 \\ \hline \end{array}$ If monetary-unit sampling is used, what is the population size?

A) 1272 B) 574 C) 4 D) unknown A) 1272 B) 574 C) 4 D) unknown

Exam 14: Audit sampling

The most common method of associating misstatement assumptions with layers of the computed upper deviation rate in monetary-unit sampling is to associate the largest dollar misstatement percents with the largest layers.

(True/False)

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Question 21

Except for the definition of what is being measured, the mean-per-unit estimate is calculated in exactly the same manner as the:

(Multiple Choice)

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Question 22

What is an auditor's evaluation of a statistical sample for attributes when a test of 100 documents results in 4 deviations, assuming the tolerable deviation rate is 5%, the expected population deviation rate is 3% and the allowance for sampling risk is 2%?

(Multiple Choice)

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Question 23

The risk the auditor is willing to take of accepting a balance as correct when the true error in the balance is greater than the tolerable misstatement is the:

(Multiple Choice)

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Question 24

There are 14 steps to audit sampling for details of balances, divided into three sections: plan the sample, select the sample and perform the audit procedures, and evaluate the results.Discuss each of the steps included in the 'evaluate the results' section for non-statistical sampling.

(Essay)

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Question 25

Before the population can be considered acceptable based on the acceptable risk of assessing control risk too low (ARO), the computed upper deviation rate (CUDR)must be __________ the tolerable deviation rate (TDR).

(Multiple Choice)

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Question 26

When does allowable risk of incorrect rejection (ARIR)affect the auditor?

(Essay)

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Question 27

Monetary-unit sampling is the most commonly used statistical method of sampling for tests of details of balances.

(True/False)

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Question 28

One of the causes of non-sampling error is:

(Multiple Choice)

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Question 29

If the result obtained from a particular sample will be critical (that is, the auditor would not be able to render an unqualified opinion unless every item in the population were examined), which of the following is the most important to the auditor?

(Multiple Choice)

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Question 30

Even when non-sampling risk is zero, there is always a chance that a sample is not reasonably representative.

(True/False)

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Question 31

The relationship between sample size and the acceptable risk of incorrect acceptance is:

(Multiple Choice)

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Question 32

When using non-statistical sampling, the sample must be a probabilistic one.

(True/False)

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Question 33

Which one of the following BEST describes what the auditor means by the rate of occurrence in the audit sampling plan?

(Multiple Choice)

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Question 34

Sampling risk (sampling error)is an inherent part of sampling which results from:

(Multiple Choice)

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Question 35

There are many situations in auditing where it is advantageous to select samples that emphasise population items that have larger recorded amounts.Which one of the following would NOT be a way to obtain such a sample?

(Multiple Choice)

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Question 36

The major difference between monetary-unit sampling (MUS)and attributes sampling is that in MUS, the:

(Multiple Choice)

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Question 37

An accounts receivable population contains a total of 4 customers.The accounts, amounts, and cumulative total are shown in the following table: Account Number Recorded Amount Cumulative Total Blue \ 357 \ 357 Brown 281 638 Grey 60 698 Green 574 1272 If monetary-unit sampling is used, what is the population size?

(Multiple Choice)

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Question 38

When monetary-unit sampling has been concluded and the population is not considered acceptable, which one of the following courses of action would NOT be appropriate for the auditor?

(Multiple Choice)

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Question 39

For monetary-unit sampling, normally the estimate of the population deviation rate is:

(Multiple Choice)

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Question 40

Showing 21 - 40 of 146

The most common method of associating misstatement assumptions with layers of the computed upper deviation rate in monetary-unit sampling is to associate the largest dollar misstatement percents with the largest layers.

Except for the definition of what is being measured, the mean-per-unit estimate is calculated in exactly the same manner as the:

What is an auditor's evaluation of a statistical sample for attributes when a test of 100 documents results in 4 deviations, assuming the tolerable deviation rate is 5%, the expected population deviation rate is 3% and the allowance for sampling risk is 2%?

The risk the auditor is willing to take of accepting a balance as correct when the true error in the balance is greater than the tolerable misstatement is the:

There are 14 steps to audit sampling for details of balances, divided into three sections: plan the sample, select the sample and perform the audit procedures, and evaluate the results.Discuss each of the steps included in the 'evaluate the results' section for non-statistical sampling.

Before the population can be considered acceptable based on the acceptable risk of assessing control risk too low (ARO), the computed upper deviation rate (CUDR)must be __________ the tolerable deviation rate (TDR).

When does allowable risk of incorrect rejection (ARIR)affect the auditor?

Monetary-unit sampling is the most commonly used statistical method of sampling for tests of details of balances.

One of the causes of non-sampling error is:

If the result obtained from a particular sample will be critical (that is, the auditor would not be able to render an unqualified opinion unless every item in the population were examined), which of the following is the most important to the auditor?

Even when non-sampling risk is zero, there is always a chance that a sample is not reasonably representative.

The relationship between sample size and the acceptable risk of incorrect acceptance is:

When using non-statistical sampling, the sample must be a probabilistic one.

Which one of the following BEST describes what the auditor means by the rate of occurrence in the audit sampling plan?

Sampling risk (sampling error)is an inherent part of sampling which results from:

There are many situations in auditing where it is advantageous to select samples that emphasise population items that have larger recorded amounts.Which one of the following would NOT be a way to obtain such a sample?

The major difference between monetary-unit sampling (MUS)and attributes sampling is that in MUS, the:

When monetary-unit sampling has been concluded and the population is not considered acceptable, which one of the following courses of action would NOT be appropriate for the auditor?

For monetary-unit sampling, normally the estimate of the population deviation rate is:

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