PAS3193 Quiz 2 April 2022

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.

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 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.

Which of the following is not an advantage of non-statistical sampling?

 

• a.       it allows an auditor to measure sampling risk

• b.         it is lower cost than statistical sampling

• c.         it allows an auditor to select a sample that they believe is appropriate

• d.         it requires less staff training

If the total projected error in an account balance was RM3,248 and the tolerable error was set at RM10 000, the auditor would:

 

• a.         decide that further audit work was required

• b.       conclude that the errors detected are not material

• c.         conclude that the errors uncovered are material

• d.         conduct other tests aimed at the assertion being tested

Which of the following is not considered when obtaining audit evidence through sampling?

• a. The effectiveness of control procedures.

• b. The efficiency of control procedures.

• c. The dollar accuracy of account balances.

• d. The dollar accuracy of classes of transactions.

For which of the following audit procedures would sampling be most appropriate?

• a. Inquiry.

• b. Observation.

• c. Confirmation.

• d. Analytics.