Question 1

The auditor has decided to audit all accounts receivable amounts that are over 120 days old and over $5000. What type of sample selection method is the auditor using?

Accepted Answer

A)  haphazard 
B)  systematic 
C)  directed 
D)  block 
A)  haphazard 
B)  systematic 
C)  directed 
D)  block

Question 2

When does the auditor use simple random sampling?

Accepted Answer

A)  when the auditor has a particular judgmental criteria that is used to select the sample 
B)  where the auditor wants numbers in sequence and would like to select the sample rapidly 
C)  for testing of cutoff after the year end with respect to accounts payable 
D)  for populations where each item is considered to have the same characteristics for audit purposes 
A)  when the auditor has a particular judgmental criteria that is used to select the sample 
B)  where the auditor wants numbers in sequence and would like to select the sample rapidly 
C)  for testing of cutoff after the year end with respect to accounts payable 
D)  for populations where each item is considered to have the same characteristics for audit purposes

Question 3

Which of the following best describes what the auditor means by the exception rate in the attribute sampling plan? The

Accepted Answer

A)  number of errors that can reasonably be expected to be found in a population. 
B)  frequency with which a certain characteristic occurs within a population. 
C)  degree of confidence that the sample is representative of the population. 
D)  dollar range within which the true population total can be expected to fall. 
A)  number of errors that can reasonably be expected to be found in a population. 
B)  frequency with which a certain characteristic occurs within a population. 
C)  degree of confidence that the sample is representative of the population. 
D)  dollar range within which the true population total can be expected to fall.

Question 4

A) Describe three types of sample selection methods commonly associated with statistical audit sampling.
B) Explain the difference between sampling with replacement and without replacement. Which method is more common in audit practice?
C) Describe the steps involved in systematic sampling.

Accepted Answer

A)Three types of sample selection method

Question 5

As part of the audit program for the audit of sales, the auditor will "review sales transactions for large and unusual amounts." Which of the following types of sampling would be suitable for this audit procedure?

Accepted Answer

A)  systematic 
B)  attribute 
C)  block 
D)  directed 
A)  systematic 
B)  attribute 
C)  block 
D)  directed

Question 6

A common use of block testing is testing

Accepted Answer

A)  cutoff. 
B)  existence. 
C)  authorization. 
D)  valuation. 
A)  cutoff. 
B)  existence. 
C)  authorization. 
D)  valuation.

Question 7

The auditor is going to select a sample that is a statistical probabilistic method of sample evaluation that results in an estimate of the proportion of items in a population containing a characteristic or attribute of interest. The auditor is using what type of sampling?

Accepted Answer

A)  attribute sampling 
B)  discovery sampling 
C)  monetary unit sampling 
D)  variable estimation sampling 
A)  attribute sampling 
B)  discovery sampling 
C)  monetary unit sampling 
D)  variable estimation sampling

The auditor has decided to audit all accounts receivable amounts that are over 120 days old and over $5000. What type of sample selection method is the auditor using?

When does the auditor use simple random sampling?

Which of the following best describes what the auditor means by the exception rate in the attribute sampling plan? The

A) Describe three types of sample selection methods commonly associated with statistical audit sampling. B) Explain the difference between sampling with replacement and without replacement. Which method is more common in audit practice? C) Describe the steps involved in systematic sampling.

As part of the audit program for the audit of sales, the auditor will "review sales transactions for large and unusual amounts." Which of the following types of sampling would be suitable for this audit procedure?

A common use of block testing is testing

The auditor is going to select a sample that is a statistical probabilistic method of sample evaluation that results in an estimate of the proportion of items in a population containing a characteristic or attribute of interest. The auditor is using what type of sampling?

The Demand for Audit and Other Assurance Services

The Public Accounting Profession and Audit Quality

Legal Liability

Professional Judgment and Ethics

Audit Responsibilities and Objectives

Client Acceptance and Planning the Audit

Materiality and Risk

Internal Controls and Control Risk

Audit Evidence

Audit Strategy and Audit Program

Audit of the Revenue Cycle

Audit of the Acquisition and Payment Cycle

Audit of the Inventory and Distribution Cycle

Audit of the Human Resources and Payroll Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash Balances

Completing the Audit

Audit Reports on Financial Statements

Other Assurance and Nonassurance Services

Filters

Exam 11: Audit Sampling Concepts

The auditor has decided to audit all accounts receivable amounts that are over 120 days old and over $5000. What type of sample selection method is the auditor using?

When does the auditor use simple random sampling?

Which of the following best describes what the auditor means by the exception rate in the attribute sampling plan? The

A) Describe three types of sample selection methods commonly associated with statistical audit sampling. B) Explain the difference between sampling with replacement and without replacement. Which method is more common in audit practice? C) Describe the steps involved in systematic sampling.

As part of the audit program for the audit of sales, the auditor will "review sales transactions for large and unusual amounts." Which of the following types of sampling would be suitable for this audit procedure?

A common use of block testing is testing

The auditor is going to select a sample that is a statistical probabilistic method of sample evaluation that results in an estimate of the proportion of items in a population containing a characteristic or attribute of interest. The auditor is using what type of sampling?

The Demand for Audit and Other Assurance Services

The Public Accounting Profession and Audit Quality

Legal Liability

Professional Judgment and Ethics

Audit Responsibilities and Objectives

Client Acceptance and Planning the Audit

Materiality and Risk

Internal Controls and Control Risk

Audit Evidence

Audit Strategy and Audit Program

Audit of the Revenue Cycle

Audit of the Acquisition and Payment Cycle

Audit of the Inventory and Distribution Cycle

Audit of the Human Resources and Payroll Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash Balances

Completing the Audit

Audit Reports on Financial Statements

Other Assurance and Nonassurance Services

Filters