Question 1

Which of the following characteristics is appropriately related to the process of sampling?

Accepted Answer

A)  Sampling precisely identifies a characteristic of the population. 
B)  Sampling requires various judgments on the part of the individual. 
C)  Sampling normally is more effective than examining the population. 
D)  Sampling is not significantly influenced by how the population is defined. 
A)  Sampling precisely identifies a characteristic of the population. 
B)  Sampling requires various judgments on the part of the individual. 
C)  Sampling normally is more effective than examining the population. 
D)  Sampling is not significantly influenced by how the population is defined.

Question 2

In sampling,an individual makes a statement about a _______________ of interest by examining a _______________ (or subset)of items

Accepted Answer

A)  sample, population. 
B)  sampling unit, population. 
C)  population, sample. 
D)  population, sampling unit. 
A)  sample, population. 
B)  sampling unit, population. 
C)  population, sample. 
D)  population, sampling unit.

Question 3

Two methods of variables sampling are classical variables sampling and monetary unit sampling.

Accepted Answer

A) True 
 B)False

Question 4

The risk of assessing control risk too high causes a(n)________________________ loss for the auditor.

Accepted Answer

The answer of The risk of assessing control risk too...

Question 5

Which of the following steps in the sampling process is ordinarily performed last?

Accepted Answer

A)  Determine the objective of sampling. 
B)  Measure sample items. 
C)  Evaluate the sample results. 
D)  Define the characteristic of interest. 
A)  Determine the objective of sampling. 
B)  Measure sample items. 
C)  Evaluate the sample results. 
D)  Define the characteristic of interest.

Question 6

Which of the following statements is not true if the precision interval for a sampling risk of 10 percent ranges from 60 to 70?

Accepted Answer

A)  A 10 percent probability exists that the true population value is less than 60 or more than 70. 
B)  A 90 percent probability exists that the true population value is less than 60 or more than 70. 
C)  The reliability is 90 percent. 
D)  The precision is 5. 
A)  A 10 percent probability exists that the true population value is less than 60 or more than 70. 
B)  A 90 percent probability exists that the true population value is less than 60 or more than 70. 
C)  The reliability is 90 percent. 
D)  The precision is 5.

Question 7

Which of the following statements is true with regard to sampling?

Accepted Answer

A)  Sampling can be used only in situations in which the population is relatively homogenous in nature. 
B)  Sampling is typically more efficient than examining the entire population. 
C)  Sampling is typically more effective than examining the entire population. 
D)  Sampling should be used when the need for more precise information is important. 
A)  Sampling can be used only in situations in which the population is relatively homogenous in nature. 
B)  Sampling is typically more efficient than examining the entire population. 
C)  Sampling is typically more effective than examining the entire population. 
D)  Sampling should be used when the need for more precise information is important.

Question 8

Which of the following components of the audit risk model is most closely associated with variables sampling?

Accepted Answer

A)  Audit risk. 
B)  Risk of material misstatement. 
C)  Detection risk. 
D)  Analytical procedures risk. 
A)  Audit risk. 
B)  Risk of material misstatement. 
C)  Detection risk. 
D)  Analytical procedures risk.

Question 9

Sampling risk is the probability that the decision made based on the sample is different from the decision that would be made examining the entire population.

Accepted Answer

A) True 
 B)False

Question 10

If the adjusted sample rate of deviation exceeds the tolerable rate of deviation,the auditor should reduce the planned level of reliance on internal control.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following practices is not used to control sampling risk?

Accepted Answer

A)  Selecting all items in the population for examination. 
B)  Determining the sample size using mathematical methods. 
C)  Ensuring that all items have an equal opportunity to be selected. 
D)  Evaluating sample results using mathematical methods. 
A)  Selecting all items in the population for examination. 
B)  Determining the sample size using mathematical methods. 
C)  Ensuring that all items have an equal opportunity to be selected. 
D)  Evaluating sample results using mathematical methods.

Question 12

______________________________ is the maximum level of misstatement that the auditor will allow in an account balance without concluding that the account balance is misstated.

Accepted Answer

Tolerable

Question 13

Which of the following statements is not true with respect to nonstatistical sampling?

Accepted Answer

A)  It cannot be used in an audit conducted in accordance with generally accepted auditing standards. 
B)  It considers a number of factors in determining the appropriate sample size. 
C)  When using it, an individual makes some estimate of the characteristic of interest. 
D)  It requires the use of judgment on the part of the individual performing the sampling application. 
A)  It cannot be used in an audit conducted in accordance with generally accepted auditing standards. 
B)  It considers a number of factors in determining the appropriate sample size. 
C)  When using it, an individual makes some estimate of the characteristic of interest. 
D)  It requires the use of judgment on the part of the individual performing the sampling application.

Question 14

Which of the following is not true with respect to the risk of incorrect acceptance?

Accepted Answer

A)  It results in an efficiency loss to the auditor. 
B)  It occurs when the auditor's sample indicates that the account balance is fairly stated. 
C)  It occurs when the true misstatement in the account balance exceeds tolerable misstatement. 
D)  The auditor can measure the exposure to this risk when using statistical sampling applications. 
A)  It results in an efficiency loss to the auditor. 
B)  It occurs when the auditor's sample indicates that the account balance is fairly stated. 
C)  It occurs when the true misstatement in the account balance exceeds tolerable misstatement. 
D)  The auditor can measure the exposure to this risk when using statistical sampling applications.

Question 15

When using ____________________________________________________,the auditor identifies a series of random numbers and selects items in the population corresponding with those numbers.

Accepted Answer

unrestricted random

Question 16

Why is the auditor more concerned with the risk of assessing control risk too low rather than the risk of assessing control risk too high?

Accepted Answer

A)  The risk of assessing control risk too high is not a type of sampling risk. 
B)  The risk of assessing control risk too low exposes the auditor to an efficiency loss. 
C)  The risk of assessing control risk too low may result in the auditor's failing to perform sufficient substantive procedures. 
D)  The risk of assessing control risk too low cannot be measured by the auditor during the sampling process. 
A)  The risk of assessing control risk too high is not a type of sampling risk. 
B)  The risk of assessing control risk too low exposes the auditor to an efficiency loss. 
C)  The risk of assessing control risk too low may result in the auditor's failing to perform sufficient substantive procedures. 
D)  The risk of assessing control risk too low cannot be measured by the auditor during the sampling process.

Question 17

Selecting a sample using a series of random numbers to identify sample items is referred to as

Accepted Answer

A)  Block selection. 
B)  Haphazard selection. 
C)  Systematic random selection. 
D)  Unrestricted random selection. 
A)  Block selection. 
B)  Haphazard selection. 
C)  Systematic random selection. 
D)  Unrestricted random selection.

Question 18

The ______________________ (or confidence)is the likelihood of achieving a given level of precision.

Accepted Answer

The answer of The ______________________ (or confidence)is the likelihood of...

Question 19

If the population of interest is not carefully defined,it will be difficult for the auditor to select a sample that represents the population.

Accepted Answer

A) True 
 B)False

Question 20

The risk of assessing control risk too high relates to the effectiveness of an audit.

Accepted Answer

A) True 
 B)False

Which of the following characteristics is appropriately related to the process of sampling?

In sampling,an individual makes a statement about a _ of interest by examining a _ (or subset)of items

Two methods of variables sampling are classical variables sampling and monetary unit sampling.

The risk of assessing control risk too high causes a(n)________________________ loss for the auditor.

Which of the following steps in the sampling process is ordinarily performed last?

Which of the following statements is not true if the precision interval for a sampling risk of 10 percent ranges from 60 to 70?

Which of the following statements is true with regard to sampling?

Which of the following components of the audit risk model is most closely associated with variables sampling?

Sampling risk is the probability that the decision made based on the sample is different from the decision that would be made examining the entire population.

If the adjusted sample rate of deviation exceeds the tolerable rate of deviation,the auditor should reduce the planned level of reliance on internal control.

Which of the following practices is not used to control sampling risk?

______________________________ is the maximum level of misstatement that the auditor will allow in an account balance without concluding that the account balance is misstated.

Which of the following statements is not true with respect to nonstatistical sampling?

Which of the following is not true with respect to the risk of incorrect acceptance?

When using ____________________________________________________,the auditor identifies a series of random numbers and selects items in the population corresponding with those numbers.

Why is the auditor more concerned with the risk of assessing control risk too low rather than the risk of assessing control risk too high?

Selecting a sample using a series of random numbers to identify sample items is referred to as

The ______________________ (or confidence)is the likelihood of achieving a given level of precision.

If the population of interest is not carefully defined,it will be difficult for the auditor to select a sample that represents the population.

The risk of assessing control risk too high relates to the effectiveness of an audit.

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Governmental and Fraud Audits

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

Filters

Exam 17: Overview of Sampling

Which of the following characteristics is appropriately related to the process of sampling?

In sampling,an individual makes a statement about a _______________ of interest by examining a _______________ (or subset)of items

Two methods of variables sampling are classical variables sampling and monetary unit sampling.

The risk of assessing control risk too high causes a(n)________________________ loss for the auditor.

Which of the following steps in the sampling process is ordinarily performed last?

Which of the following statements is not true if the precision interval for a sampling risk of 10 percent ranges from 60 to 70?

Which of the following statements is true with regard to sampling?

Which of the following components of the audit risk model is most closely associated with variables sampling?

Sampling risk is the probability that the decision made based on the sample is different from the decision that would be made examining the entire population.

If the adjusted sample rate of deviation exceeds the tolerable rate of deviation,the auditor should reduce the planned level of reliance on internal control.

Which of the following practices is not used to control sampling risk?

______________________________ is the maximum level of misstatement that the auditor will allow in an account balance without concluding that the account balance is misstated.

Which of the following statements is not true with respect to nonstatistical sampling?

Which of the following is not true with respect to the risk of incorrect acceptance?

When using ____________________________________________________,the auditor identifies a series of random numbers and selects items in the population corresponding with those numbers.

Why is the auditor more concerned with the risk of assessing control risk too low rather than the risk of assessing control risk too high?

Selecting a sample using a series of random numbers to identify sample items is referred to as

The ______________________ (or confidence)is the likelihood of achieving a given level of precision.

If the population of interest is not carefully defined,it will be difficult for the auditor to select a sample that represents the population.

The risk of assessing control risk too high relates to the effectiveness of an audit.

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Governmental and Fraud Audits

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

Filters

In sampling,an individual makes a statement about a _ of interest by examining a _ (or subset)of items