Audit Sampling

A sample in which the characteristics of the sample are the same as those of the population is a (n)

• Sample risks.

• Representative sample.

• Random sample.

• Population.

One of the ways to eliminate nonsampling risk is through

• Proper supervision and instruction of the client's employees.

• Proper supervision and instruction of the audit team.

• Controls which ensure that the sample drawn is random and representative.

• The use of appropriate sampling technique.

One cause of nonsampling risk is

• Ineffective use of audit procedures.

• Use of extensive tests of controls.

• Testing less than the entire population.

• Any of the above.

When the auditor goes through a population and selects items for the sample without regard to their size, source, or other distinguishing characteristics, it is called

• Statistical selection.

• Block sample selection.

• Haphazard selection.

• Systematic sample selection.

When the auditor intends to evaluate a sample statistically, the only acceptable selection method is

• Block sample selection.

• Judgmental selection.

• Statistical sample selection.

• Haphazard selection.

A sample in which every possible combination of items in the population has an equal chance of constituting the sample is a

• Judgment sample.

• Statistical sample

• Representative sample.

• Random sample

Which of the following statements is correct?

• The auditor's failure to recognize an exception is a significant cause of sampling risk.

• The use of inappropriate audit procedures is a significant cause of nonsampling risk.

• A sample of all items of a population will eliminate sampling risk, but increase nonsampling risk.

• The use of an appropriate sample selection technique ensures a representative sample.

Which of the following best illustrates the concept of sampling risk?

• A randomly chosen sample may not be representative of the

  population as a whole of the characteristics of interest.

• An auditor may fail to recognize errors in the documents examined for the chosen sample.

• The documents related to the chosen sample may not be available for inspection.

• An auditor may select audit procedures that are not appropriate to achieve the specific objective.

Assume that an auditor is interested in using a monetary unit sampling to edit a client's accounts receivable balance. The balance is composed of 1,502 customer accounts. In addition, there are 73,019 invoices that total RM 8,276,912. For purposes of applying monetary unit sampling of the client's accounts receivable, the population is

• 73,019.

• 8,276,912.

• 1,502.

• There is insufficient information to determine the population size.

• RM 5,050,000.

• RM 6,000,000.

• RM 5,125,000.

• RM 6,150,000.