Question 1

Confidence level is the complement of sampling risk.

Accepted Answer

A) True 
 B)False

Question 2

Why must an auditor use sampling?
 What tradeoffs occur when an auditor uses sampling?

Accepted Answer

An auditor must use sampling because to

Question 3

In attributes sampling,a 10% change in which of the following factors normally will have the least effect on the size of a statistical sample?

Accepted Answer

A)  Population size. 
B)  Tolerable deviation rate. 
C)  Expected population deviation rate. 
D)  Standard deviation. 
A)  Population size. 
B)  Tolerable deviation rate. 
C)  Expected population deviation rate. 
D)  Standard deviation.

Question 4

In determining the sample size for a test of controls,an auditor should consider the expected deviation rate,desired confidence level,and the

Accepted Answer

A)  Tolerable deviation rate. 
B)  Risk of incorrect acceptance. 
C)  Nature and cause of deviations. 
D)  Population size. 
A)  Tolerable deviation rate. 
B)  Risk of incorrect acceptance. 
C)  Nature and cause of deviations. 
D)  Population size.

Question 5

Which of the following risks is related to effectiveness of testing?

Accepted Answer

A)  The risk of incorrect rejection. 
B)  Inherent risk. 
C)  The risk of incorrect acceptance. 
D)  None of the above. 
A)  The risk of incorrect rejection. 
B)  Inherent risk. 
C)  The risk of incorrect acceptance. 
D)  None of the above.

Question 6

For which of the following audit tests would an auditor most likely use attributes sampling?

Accepted Answer

A)  Making an independent estimate of the amount of LIFO inventory. 
B)  Examining invoices in support of the valuation of fixed asset additions. 
C)  Selecting accounts receivable balances for confirmation. 
D)  Inspecting employee time cards for proper approval by supervisors. 
A)  Making an independent estimate of the amount of LIFO inventory. 
B)  Examining invoices in support of the valuation of fixed asset additions. 
C)  Selecting accounts receivable balances for confirmation. 
D)  Inspecting employee time cards for proper approval by supervisors.

Question 7

"Technology has steadily reduced the number of situations in which audit sampling is necessary and in the future technology will probably eliminate the need for auditors to rely on sampling." Defend or refute the preceding statement.

Accepted Answer

Technology will not likely eliminate the

Confidence level is the complement of sampling risk.

Why must an auditor use sampling? What tradeoffs occur when an auditor uses sampling?

In attributes sampling,a 10% change in which of the following factors normally will have the least effect on the size of a statistical sample?

In determining the sample size for a test of controls,an auditor should consider the expected deviation rate,desired confidence level,and the

Which of the following risks is related to effectiveness of testing?

For which of the following audit tests would an auditor most likely use attributes sampling?

"Technology has steadily reduced the number of situations in which audit sampling is necessary and in the future technology will probably eliminate the need for auditors to rely on sampling." Defend or refute the preceding statement.

An Introduction to Assurance and Financial Statement Auditing

The Financial Statement Auditing Environment

Audit Planning,Types of Audit Tests,and Materiality

Risk Assessment

Evidence and Documentation

Internal Control in a Financial Statement Audit

Auditing Internal Control Over Financial Reporting

Audit Sampling: An Application to Substantive Tests of Account Balances

Auditing the Revenue Process

Auditing the Purchasing Process

Auditing the Human Resource Management Process

Assurance,Attestation,and Internal Auditing Services

Auditing the Financinginvesting Process: Prepaid Expenses, Intangible Assets, and Property, Plant, and Equipment

Auditing the Financinginvesting Process: Long-Term Liabilities, Stockholders Equity, and Income Statement Accounts

Auditing the Financinginvesting Process: Cash and Investments

Completing the Audit Engagement

Reports on Audited Financial Statements

Professional Conduct,Independence,and Quality Control

Legal Liability

Assurance,Attestation,and Internal Auditing Services

Filters

Exam 8: Audit Sampling: An Overview and Application to Tests of Controls

Confidence level is the complement of sampling risk.

Why must an auditor use sampling? What tradeoffs occur when an auditor uses sampling?

In attributes sampling,a 10% change in which of the following factors normally will have the least effect on the size of a statistical sample?

In determining the sample size for a test of controls,an auditor should consider the expected deviation rate,desired confidence level,and the

Which of the following risks is related to effectiveness of testing?

For which of the following audit tests would an auditor most likely use attributes sampling?

"Technology has steadily reduced the number of situations in which audit sampling is necessary and in the future technology will probably eliminate the need for auditors to rely on sampling." Defend or refute the preceding statement.

An Introduction to Assurance and Financial Statement Auditing

The Financial Statement Auditing Environment

Audit Planning,Types of Audit Tests,and Materiality

Risk Assessment

Evidence and Documentation

Internal Control in a Financial Statement Audit

Auditing Internal Control Over Financial Reporting

Audit Sampling: An Application to Substantive Tests of Account Balances

Auditing the Revenue Process

Auditing the Purchasing Process

Auditing the Human Resource Management Process

Assurance,Attestation,and Internal Auditing Services

Auditing the Financinginvesting Process: Prepaid Expenses, Intangible Assets, and Property, Plant, and Equipment

Auditing the Financinginvesting Process: Long-Term Liabilities, Stockholders Equity, and Income Statement Accounts

Auditing the Financinginvesting Process: Cash and Investments

Completing the Audit Engagement

Reports on Audited Financial Statements

Professional Conduct,Independence,and Quality Control

Legal Liability

Assurance,Attestation,and Internal Auditing Services

Filters