Audit Sampling Day 1 Recap

True of False

Audit Sampling is performed during the execution phase of audit,

in test of controls and test of details.

• True

• False

Which technique should the auditor select as the most appropriate

if a population constitutes a small number of large value items?

• a. Selecting all items

• b. Selecting specific items

• c. Audit Sampling

(a)   is when the auditor applies a procedure to less than 100% of items within a population and all items have a chance of selection to provide the auditor a reasonable basis to draw conclusions of the entire population.

(Please answer in ALL CAPS)

True of False

Audit Sampling is applicable to be used when inquiring about a transaction

and when performing analytical procedures.

• True

• False

Which audit sampling technique is not recommended?

• A. Random Sampling

• B. Systematic Sampling

• C. Haphazard and Block Selection

• D. Monetary Unit Sampling

(a)   is a technique that is useful when there is a unique identification number for every sampling unit in the population.

Otherwise, the auditor must assign identification numbers to each item.

(Please answer in ALL CAPS)

Which sampling method uses sampling interval which is computed as the number or amount of units in the population divided by the sample size?

(Please answer in ALL CAPS)

(a)  

Which among the following statements is TRUE on non- sampling risk?

• a. Non sampling risk cannot be measured.

• b. It can be reduced to an acceptable level by adequate planning and supervision of audit work

• c. All of the above

(a)   is a systematic sample technique that uses

monetary unit values, rather than items as the sampling population.

(Please answer in ALL CAPS)

10. How many days test days are required for the TEST AUDIT DAYS SCHEME?

• A. At least 6

  days per month, including mandatory test days)

• B. At least 5

  days per month, including mandatory test days)

• C. At least 4

  days per month, including mandatory test days)

• D. None of the above