Exam 14: Audit sampling

Allowable risk of overreliance is the risk that the auditor is willing to take of accepting a control as effective, or a rate of monetary misstatements as tolerable, when the true population deviation rate is greater than the tolerable deviation rate.

(True/False)

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Question 41

Estimated misstatement in the population and sample size are inversely related; that is, as estimated misstatement increases, sample size decreases.

(True/False)

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Question 42

When errors are found, a common assumption in practice is to assume:

(Multiple Choice)

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Question 43

In systematic sample selection, the interval is determined by dividing the population size by the desired sample size.

(True/False)

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Question 44

The deviation rate in a representative sample is the:

(Multiple Choice)

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Question 45

The auditor is concerned with the audited value rather than the error amount of each item in the sample when using:

(Multiple Choice)

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Question 46

The appropriate assumption to make regarding the overall percent of error in those population items containing an error is:

(Multiple Choice)

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Question 47

An advantage of using statistical sampling techniques is that such techniques:

(Multiple Choice)

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Question 48

Statistical theory proves that in most types of populations to which audit sampling applies, the population size is:

(Multiple Choice)

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Question 49

The process which requires the calculation of an interval and then selects the items based on the size of the interval is:

(Multiple Choice)

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Question 50

In performing a review of his client's cash disbursements, an auditor uses systematic sample selection with a random start.The primary disadvantage of systematic sample selection is that population items:

(Multiple Choice)

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Question 51

In estimating the population misstatement, the first step in projecting from the sample to the population is to:

(Multiple Choice)

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Question 52

Non-sampling error occurs when audit tests do not uncover existing exceptions in the sample.

(True/False)

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Question 53

Tolerable misstatement is inversely related to sample size; that is, as tolerable misstatement increases, sample size decreases.

(True/False)

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Question 54

Discuss the advantages and disadvantages of monetary-unit sampling (MUS)over other sampling methods.

(Essay)

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Question 55

Which one of the following statements is NOT correct regarding probabilistic and non-probabilistic sample selection?

(Multiple Choice)

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Question 56

When using systematic selection procedures with monetary-unit sampling of accounts receivable, the interval is determined by:

(Multiple Choice)

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Question 57

The factor that has the least effect on sample size is the difference between the tolerable deviation rate and estimated population deviation rate.

(True/False)

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Question 58

If the size of the sample to be used in a particular test of attributes has NOT been determined by using statistical concepts, but the sample has been chosen in accordance with random selection procedures:

(Multiple Choice)

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Question 59

Non-probabilistic sample selection methods are NOT based on strict mathematical probabilities; therefore:

(Multiple Choice)

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Question 60

Showing 41 - 60 of 146

Allowable risk of overreliance is the risk that the auditor is willing to take of accepting a control as effective, or a rate of monetary misstatements as tolerable, when the true population deviation rate is greater than the tolerable deviation rate.

Estimated misstatement in the population and sample size are inversely related; that is, as estimated misstatement increases, sample size decreases.

When errors are found, a common assumption in practice is to assume:

In systematic sample selection, the interval is determined by dividing the population size by the desired sample size.

The deviation rate in a representative sample is the:

The auditor is concerned with the audited value rather than the error amount of each item in the sample when using:

The appropriate assumption to make regarding the overall percent of error in those population items containing an error is:

An advantage of using statistical sampling techniques is that such techniques:

Statistical theory proves that in most types of populations to which audit sampling applies, the population size is:

The process which requires the calculation of an interval and then selects the items based on the size of the interval is:

In performing a review of his client's cash disbursements, an auditor uses systematic sample selection with a random start.The primary disadvantage of systematic sample selection is that population items:

In estimating the population misstatement, the first step in projecting from the sample to the population is to:

Non-sampling error occurs when audit tests do not uncover existing exceptions in the sample.

Tolerable misstatement is inversely related to sample size; that is, as tolerable misstatement increases, sample size decreases.

Discuss the advantages and disadvantages of monetary-unit sampling (MUS)over other sampling methods.

Which one of the following statements is NOT correct regarding probabilistic and non-probabilistic sample selection?

When using systematic selection procedures with monetary-unit sampling of accounts receivable, the interval is determined by:

The factor that has the least effect on sample size is the difference between the tolerable deviation rate and estimated population deviation rate.

If the size of the sample to be used in a particular test of attributes has NOT been determined by using statistical concepts, but the sample has been chosen in accordance with random selection procedures:

Non-probabilistic sample selection methods are NOT based on strict mathematical probabilities; therefore:

Demand for audit and assurance services

Auditors’ legal environment

Audit quality and ethics

Audit responsibilities and objectives

Audit evidence

Audit planning and documentation

Materiality and risk

Internal control and control risk

Fraud auditing

The impact of information technology on the audit process

Overall audit plan and audit program

Audit of the sales and collection cycle: Tests of controls and substantive tests of transactions

Completing tests in the sales and collection cycle: Accounts receivable

Audit of transaction cycles and financial statement balances I

Audit of transaction cycles and financial statement balances II

Completing the audit

Audit reporting

Other auditing and assurance engagements

Filters