WorksheetsAudit Sampling
Total questions: 35
Worksheet time: 8mins
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)
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
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
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
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
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
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
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.
10. Non-sampling errors occur when audit tests do not uncover existing exceptions in the
A. Population
B. Planning stage
C. Sample
D. Financial statement
11. One of the cause of non-sampling error is
A. failure to draw a random sample
B. failure to draw a representative sample
C. the use inappropriate or ineffective audit procedures
D. the use of attributes sampling instead of variables sampling
12. One of the ways to control non-sampling risk is through
A. proper supervision and instruction of the client's employees.
B. Proper supervision and instruction of the audit team
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
a. Random and nonrandom
b. Statistical and nonstatistical
c. Precision and reliability
d. Risk and nonrisk
14. An advantage of using statistical sampling is that such techniques
a. mathematically measure risk
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
a. mathematically measure risk
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
a. More efficient samples
b. Measurement of sample reliability
c. Replacement of the auditor's professional judgment
d. Measurement of sample risk
16. Statistical sample cannot
a. Determine reliability of samples
b. Select a sample to draw inference about population
c. Assure a sample will be representative of a population
d. Measure the risk that a sample is not representative o a population
17. Which of the following sampling plans would be designed to estimate a numerical measurement of a population such as peso value?
a. Numerical sampling
b. Sampling for attributes
c. Discovery sampling
d. Sampling for variables
18. which of the following sampling methods would be most appropriate in perforing tests of controls over authorization of cash disbursement
a. Attributes
b. Variables
c. Ratio
d. stratified
19. In assessing sample risk, alpha risks relate to the
a. Efficiency of the audit
b. Selection of the sample
c. Effectiveness of the audit
d. Audit quality controls
20. In performing substantive tests, the auditor is concerned with two risks or errors of sampling; the alpha error and the beta error.
a. The alpha error is of greater concern to the auditor than the beta error
b. The beta error is of greater concern to the auditor than the alpha 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
a. tolerable deviation rate
b. estimated population deviation rate
c. acceptable sampling risk
d. sample deviation rate
22. The maximum amount of error in a population that the auditor's willing to accept is referred to as the
a. acceptable risk
b. tolerable error
c. expected error
d. tolerable materiality
23. The deviation rate the auditor expects to find in the population, before testing begins, is called the
a. tolerable deviation rate
b. computed upper deviation rate
c. sample deviation rate
d. expected deviation rate
24. Which of the following factors is generally not considered in determining sample size for a test of controls?
a. Population size
b. tolerable rate
c. Risk of assessing control risk too low
d. Expected population deviation rate
25. The relation between sample size and the allowable sampling risk is
a. Direct
b. Inverse
c. Variable
d. Indeterminate
26. The tolerable rate deviation for the tests of controls necessary to justify a control risk assessment depends primarily on which of the following?
a. the cause of errors
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
a. Assessing control risk at a low level
b. Greater reliance on analytical procedures
c. Smaller expected frequency of misstatements
d. Smaller measure of tolerable misstatement
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
a. Tolerable deviation rate
b. Risk of incorrect acceptance
c. Nature and cause of deviations
d. Population size
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
a. Variation in the population
b. Risk levels the auditor is willing to accept
c. Deviation accurrence rate the auditor expects to exist in the population
d. Tolerable misstatement
31. Principal methods of sampling selection include all of the following except
a. Haphazard
b. Random number
c. Systematic
d. Statistical
32. A sample in which every possible combination of items in the population
a. representative sample
b. random sample
c. statistical sample
d. judgment sample
33. The process which requires the calculation of an interval and then selects the items based on the size of the interval an d then selects the items based on the size of the interval is
a. statistical sampling
b. systematic selection
c. random selection
d. computerized selection
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
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
d. do not have to be prenumbered in order for the auditor to use the technique
