Exam 9: Audit Sampling

Assume a mean-per-unit estimation variables sampling application with a tolerable misstatement of $70,000 and a book value of $700,000.After performing the sampling plan,the auditors calculated an allowance for sampling risk of $45,000 and a point estimate of the population's total audited value to be $650,000.Based on these results,the auditor would:

Statistical sampling generally may be applied to test internal control when the client's internal control procedures:

Which of the following may be used to reduce the risk of nonsampling errors?

Population - $\quad$ Size $= 10,000$ items - Book value $= \$ 8,000,000$ - Tolerable misstatement $= \$ 300,000$ Sample - $\quad$ Size $= 100$ items. - Average book value of sample items $= \$ 795$ - Allowance for sampling risk $= \$ 220,000$ - Projected misstatement $= \$ 100,000$ overstatement -The "high" end of the confidence interval around the projected misstatement is equal to an overstatement of:

The auditor using nonstatistical attributes sampling,but who nevertheless has chosen the sample in conformity with random selection procedures:

Population - $\quad$ Size $= 10,000$ items - Book value $= \$ 8,000,000$ - Tolerable misstatement $= \$ 300,000$ Sample - $\quad$ Size $= 100$ items. - Average book value of sample items $= \$ 795$ - Allowance for sampling risk $= \$ 220,000$ - Projected misstatement $= \$ 100,000$ overstatement -The most likely amount of the misstatement is equal to:

Population - $\quad$ Size $= 10,000$ items - Book value $= \$ 8,000,000$ - Tolerable misstatement $= \$ 300,000$ Sample - $\quad$ Size $= 100$ items. - Average book value of sample items $= \$ 795$ - Allowance for sampling risk $= \$ 220,000$ - Projected misstatement $= \$ 100,000$ overstatement -The average audited value in the sample is equal to:

Which of the following statistical sampling techniques involves taking samples in a series of stages?

The 4,000 accounts receivable of Miller Company have a total book value of $150,000.A CPA has selected and audited a sample of 100 accounts with a total book value of $3,700 and an audited value of $3,800. -Using the mean-per-unit estimation method an auditor has properly calculated the estimated total audited value of a population as $200,000.Her sample included 200 of the population's 40,000 items.She found that,in her sample the average audited value was $1 less than the average book value.What was the average audited value in the sample?

In variables estimation sampling,the sample standard deviation is used to calculate the:

The auditors' failure to recognize a misstatement in an amount or a deviation in an internal control data processing procedure is described as a: