Audit Sampling

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

• variables sample

• representative sample

• attributes sample

• random sample

When the auditor decides to select less than 100 percent of the population for testing, the auditor is said to use

• audit sampling

• representative sampling

• poor judgment

• estimation sampling

One of the causes of nonsampling risk is

• inadequate sample size

• choosing the wrong sample size

• ineffective audit procedures

• exceptions being found in the sample

Which one of the choices below is most correct regarding a cause of sampling risk

• ineffective use of audit procedures

• testing less than the entire population

• use of extensive tests of controls

• use of random sampling

One way to control sampling risk is to increase sample size

• True

• False

Assume a client's internal controls require each sales invoice to be supporting by a shipping document prepared by an outside company, but the clerk preparing sales invoices fails to follow this procedure exactly 3 percent of the time. If the auditor selects a sample of 100 sales invoices and finds two or four sales invoices are missing a shipping document, the sample is nonrepresentative of the population.

• True

• False

There are three phases in both statistical and nonstatistical sampling. The first phase is to

• generate random numbers for the sample

• evaluate the results

• plan the sample

• select the sample

Which of the following is not a phase in the planning of both statistical and nonstatistical sampling?

• Plan the sample

• Determine the probability that fraud has occurred

• Select the sample and perform the tests

• Evaluate the results