Recap Day 6 Intermediate Staff

What is the main purpose of critically evaluating the data when sampling?

• To ensure that the sample size is as large as possible.
• To confirm that the data collection process is lengthy and complex.
• To identify and minimize potential biases and errors in the sample.
• To make the data look more appealing in reports.

What is a potential consequence of a poorly chosen sample?

• The results will be perfectly generalizable to the population.
• The sample will be too large to manage effectively.
• The findings may be biased and not representative of the population.
• The data will be easier to collect and analyze.

What is a likely outcome if the population received does not reconcile with the GL balance?

• It indicates that the accounting processes are functioning perfectly
• It may suggest errors or discrepancies that need to be investigated and resolved.
• It suggest we must choose more sample for testing by judgement.
• It will have no impact.

What is the primary goal of EY Smart Sampling in an audit?

• To minimize the time spent on sampling.
• To identify the most complex transactions for testing
• To select a representative sample that reflects the population
• To automate the entire audit process

What should an auditor do if discrepancies are found between the minutes and other evidence?

• Ignore the discrepancies as they are likely immaterial.
• Investigate further to understand the nature of the discrepancies.
• Assume the minutes are incorrect and base conclusions on other evidence.
• Report the discrepancies to the regulatory authorities immediately.

What should an auditor do if they are unsure about how to apply EY Smart Sampling to their audit?

• Skip the sampling process entirely.
• Use a different sampling method that they are more familiar with.
• Seek guidance from the EY Smart Sampling documentation or consult with a more experienced colleague.
• Make an educated guess and proceed with the audit.

How does the mandatory use of EY Smart Sampling impact audit quality?

• It standardizes sample selection across all audits, enhancing consistency and reliability.
• It allows auditors to rely solely on their judgment for sample selection.
• It decreases audit quality by limiting the auditor's flexibility.
• It has no impact on audit quality.

When reviewing minutes of meetings, what indicates that the document is the final version?

• The minutes are handwritten.
• The minutes are typed and include a signature or approval stamp.
• The minutes are in draft format.
• The minutes are an email summary sent to all participants.

What type of information in the minutes could be significant to an audit?

• Routine administrative matters discussed in every meeting.
• Detailed descriptions of the meeting venue and catering.
• Decisions regarding significant contracts, litigation, or compliance with new regulations.
• Casual conversations between participants before and after the formal meeting.

How can meeting minutes assist auditors in assessing the completeness of related-party disclosures?

• By providing a list of all financial transactions made during the year.
• By detailing discussions and decisions involving parties with a close relationship to the company.
• By offering a summary of the company's sales figures.
• By indicating the frequency of meetings held during the year.