8. Which of the following best illustrates the concept of sampling risk

A. A randomly chosen sample may not be representative of the population as a whole on the characteristics of interest

B. An audit may select audit procedure that are not appropriate to achieve the specific objective

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

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

9. One of the ways to reduce sampling risk is to

A. Use an appropriate method of selecting sample items from the population.

B. Carefully design the audit procedures to be used.

C. Provide proper supervision and instruction of the audit team.

D. Use variables sampling rather than attitude sampling.

11. One of the cause of non-sampling error is

C. the use inappropriate or ineffective audit procedures

A. failure to draw a random sample

B. failure to draw a representative sample

D. the use of attributes sampling instead of variables sampling

12. One of the ways to control non-sampling risk is through

B. Proper supervision and instruction of the audit team

A. proper supervision and instruction of the client's employees.

C. The use of attributes sampling rather than variables sampling.

D. Control which ensure that the sample drawn is random and representative

13. PSA 530 identifies two general approaches to audit sampling. They are

b. Statistical and nonstatistical

14. An advantage of using statistical sampling is that such techniques

b. eliminate the need for judgmental decision

c. define the value of reliability necessary to provide audit assurance

d. have been established in the courts to be superior to nonstatistical sampling

15. An advantage of using statistical sampling is that such techniques

b. eliminate the need for judgmental decision

c. define the value of reliability necessary to provide audit assurance

d. have been established in the courts to be superior to nonstatistical samplinng.

15. Statistical samples do not allow

c. Replacement of the auditor's professional judgment

b. Measurement of sample reliability

16. Statistical sample cannot

c. Assure a sample will be representative of a population

a. Determine reliability of samples

b. Select a sample to draw inference about population

d. Measure the risk that a sample is not representative o a population

20. In performing substantive tests, the auditor is concerned with two risks or errors of sampling; the alpha error and the beta error.

b. The beta error is of greater concern to the auditor than the alpha error

a. The alpha error is of greater concern to the auditor than the beta error

c. The beta error and the alpha error are of equal importance to the auditor

d Neither the alpha error nor the beta error need be considered by the auditor

21. The deviation rate the auditor will permit in the population and styill be williung to nreduce the assessed level of control risk is called the

b. estimated population deviation rate

23. The deviation rate the auditor expects to find in the population, before testing begins, is called the

b. computed upper deviation rate

24. Which of the following factors is generally not considered in determining sample size for a test of controls?

c. Risk of assessing control risk too low

d. Expected population deviation rate

26. The tolerable rate deviation for the tests of controls necessary to justify a control risk assessment depends primarily on which of the following?

b. the extent of reliance to be placed on the procedures

c. the amount of any substantive errors

d. the limit used in audits of similar clients

27. A number of factors influence the sample size for an substantive test of details of an account balance. All other factors being equal, which of the following would lead to a larger sample size

d. Smaller measure of tolerable misstatement

a. Assessing control risk at a low level

b. Greater reliance on analytical procedures

c. Smaller expected frequency of misstatements

28. In determining the sample size for a test of controls, an auditor should consider the likely rate deviations, the allowable sampling risk, and the

b. Risk of incorrect acceptance

c. Nature and cause of deviations

29. Which of the following statement is correct concerning statistical sampling is test of control?

a. The population size has little or no effect on determining sample size except for very small populations.

b. The expected population deviation rate has little or no effect on determining sample size except for very small populatiopns.

c. As the population size doubles, the sample size also should double.

d. For given tolerable rate, a larger sample size should be selected as the expected

30. To determine an optimum sample size when sampling methods are used in a substantive test, all of the following factors must be considered except the

c. Deviation accurrence rate the auditor expects to exist in the population

b. Risk levels the auditor is willing to accept

34. In examining cash disbursements, an auditor plans to choose a sample using systematic selection with with a random start. The primary advantage of such a systematic selection is population items

d. do not have to be prenumbered in order for the auditor to use the technique

a. that include irregulaities will not be overloked when the auditor exercise computible reciprocal options

b. may occur in a systematic pattern , thus making the sample more representative

c. may occur more than once in a sample

Audit Sampling

Authored by Hezel Mendoza-Guillen

Business

University

Used 19+ times

AI Actions

Add similar questions

Adjust reading levels

Convert to real-world scenario

Translate activity

More...

Content View

Student View

35 questions

Show all answers

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

1. When designing audit procedure, the auditor should determine the appropriate means of selecting items for testing. The means available to the auditor

A. 100% examination (YES)

Audit sampling (YES)

Selecting specific items (YES)

B. 100% examination (NO)

Audit sampling (YES)

Selecting specific (NO)

C. 100% examination (NO)

Audit sampling (YES)

Selecting specific items (YES)

A. 100% examination (NO)

Audit sampling (NO)

Selecting specific items (YES)

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

2. This involve the application of procedures to less than 100% of the items within an account balance or class of transaction. This enables the auditor to obtain and evaluate audit evidence about some characteristics of the selected items in order to to form an opinion about the characteristics of all the items supporting an account balance or transaction class.

A. Audit techniques

B. Selective testing

C. Audit sampling

D. Specific identification

MULTIPLE CHOICE QUESTION

10 sec • 1 pt

3. Audit sampling for substantive is appropriate when

A. analytical procedures are used

B. The auditor wants to eliminate sampling risks

C. A population contains small number of large value items

D. Test of details are performed

MULTIPLE CHOICE QUESTION

10 sec • 1 pt

4. Audit sampling for test of control is generally appropriate when

A. control leaves evidence of performance

B. control leaves no evidence of performance

C. 100% of the transactions is tested

D. examining specific high value items in the population

MULTIPLE CHOICE QUESTION

10 sec • 1 pt

5. IN a sampling application, the group of items about which the auditor wants to estimate some characteristics is called the

A. Population

B. Sample

C. Attribute of interest

D. Sampling unit

MULTIPLE CHOICE QUESTION

10 sec • 1 pt

6. An error tht arises from an isolated event that has not recurred other that on specifically identifiable occasions and is therefore not representative of errors in the population.

a. tolerable error

B. non-sampling error

C. sampling error

D. anomalous error

MULTIPLE CHOICE QUESTION

10 sec • 1 pt

7. The possibility that the auditor's conclusion based on a sample may be different from the conclusion reached if the entire population were subjected to the same procedure is called

A. Aaudit risk

B. Non-sampling risk

C. Sampling risk

D. Detection

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Continue with Google

Continue with Email

Continue with Classlink

Continue with Clever

or continue with

Microsoft

Apple

Others

Already have an account?

Similar Resources on Wayground

30 questions

Marketing Channels and Supply Chain Management

Quiz

•

University

31 questions

MT (Chapter 1- 7)

Quiz

•

University

30 questions

Demand 2025

Quiz

•

University

35 questions

INTRODUCTION TO MANAGEMENT

Quiz

•

University

40 questions

BSLM605 Tutorial 1

Quiz

•

University

30 questions

MANAJEMEN KEUANGAN

Quiz

•

University

33 questions

SCRUM Overview Quiz

Quiz

•

University

30 questions

ENGLISH FOR BUSINESS 2A

Quiz

•

University

Popular Resources on Wayground

15 questions

Fractions on a Number Line

Quiz

•

3rd Grade

20 questions

Equivalent Fractions

Quiz

•

3rd Grade

25 questions

Multiplication Facts

Quiz

•

5th Grade

$fractions$

22 questions

fractions

Quiz

•

3rd Grade

20 questions

Main Idea and Details

Quiz

•

5th Grade

20 questions

Context Clues

Quiz

•

6th Grade

15 questions

Equivalent Fractions

Quiz

•

4th Grade

20 questions

Figurative Language Review

Quiz

•

6th Grade

Discover more resources for Business

12 questions

IREAD Week 4 - Review

Quiz

•

3rd Grade - University

23 questions

Subject Verb Agreement

Quiz

•

9th Grade - University

7 questions

Force and Motion

Interactive video

•

4th Grade - University

7 questions

Renewable and Nonrenewable Resources

Interactive video

•

4th Grade - University

5 questions

Poetry Interpretation

Interactive video

•

4th Grade - University

19 questions

Black History Month Trivia

Quiz

•

6th Grade - Professio...

15 questions

Review1

Quiz

•

University

15 questions

Pre1

Quiz

•

University

Audit Sampling

1. When designing audit procedure, the auditor should determine the appropriate means of selecting items for testing. The means available to the auditor

3. Audit sampling for substantive is appropriate when

4. Audit sampling for test of control is generally appropriate when

5. IN a sampling application, the group of items about which the auditor wants to estimate some characteristics is called the

6. An error tht arises from an isolated event that has not recurred other that on specifically identifiable occasions and is therefore not representative of errors in the population.

7. The possibility that the auditor's conclusion based on a sample may be different from the conclusion reached if the entire population were subjected to the same procedure is called

8. Which of the following best illustrates the concept of sampling risk

9. One of the ways to reduce sampling risk is to

10. Non-sampling errors occur when audit tests do not uncover existing exceptions in the

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Business