100% CORRECT SOLUTIONS|UPDATED VERSION
!!!|A+ GRADED|EXAM READY|95% SUCCESS
Interviewing and Observing Personnel - ANSWER Actual Functions - An adequate test
to ensure that the individual who is assigned and authorized to perform a particular function
is the person who is actually doing the job.
Actual Processes and Procedures - allows the IS auditor to gain evidence of compliance and
observe deviations, if any.
Security Awareness - Should be observed to verify an individuals understanding and practice
of good preventive and detective security measures.
Reporting Relationships - Should be observed to ensure that assigned responsibilities and
adequate segregation of duties are being practiced.
Observation Drawbacks - The observer may interfere with the observed environment.
People when observed may change their behaviors.
Statistical Sampling - ANSWER An objective (math based) method of determining the
sample size and selection criteria
Uses the mathematical laws of probability. IS auditor quantitatively decides how closely the
sample should represent the population
Nonstatistical Sampling - ANSWER Use auditor judgement to determine the method of
sampling. These judgements are based on subjective (decision based) judgement as to which
items/transactions are the most material and most risky
Attribute Sampling - ANSWER Sampling model used to estimate the rate of occurrence
of a specific quality in a population. Answers the question of "how many"
Types:
1
, Stop-or-go Sampling - Sampling model that helps prevent excessive sampling of an attribute
by allowing an audit test to be stopped at the earliest possible moment. Used when very few
errors will be found in a population
Discovery Sampling - Sampling model that can be used when the expected occurrence rate is
extremely low. Used when the objective of the audit is to seek out fraud, circumvention of
regulations or other irregularities.
Variable Sampling - ANSWER Technique used to estimate the monetary value or some
other unit of measure of a population from a sample portion.
Types:
Stratified mean per unit - Statistical model in which the population is divided into groups and
samples are drawn from the various groups; used to produce a smaller overall sample size
than unstratified mean per unit
Unstratified mean per unit - A statistical model in which a sample mean is calculated and
projected as an estimated total
Difference Estimation - Statistical model used to estimate the total difference between
audited values and book values based on differences obtained from sample observations.
Confidence Coefficient - ANSWER A percentage expression of the probability that the
characteristics of the sample are a true representation of the population. 95% is considered
a high degree of comfort.
If internal controls are strong, the confidence coefficient may be lowered and the sample
size lowered. The greater the confidence coefficient, the larger the sample size
Expected Error Rate - ANSWER Estimate stated as a percent of errors that may exist.
The greater the expected error rate, the greater the sample size. Applied to attribute
sampling, not variable sampling.
Tolerable Error Rate - ANSWER maximum misstatement or number of errors that can
exist without an account being materially misstated
Sample Mean - ANSWER Sum of all the sample values divided by the size of the
sample. Measures the average.
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!!!|A+ GRADED|EXAM READY|95% SUCCESS
Interviewing and Observing Personnel - ANSWER Actual Functions - An adequate test
to ensure that the individual who is assigned and authorized to perform a particular function
is the person who is actually doing the job.
Actual Processes and Procedures - allows the IS auditor to gain evidence of compliance and
observe deviations, if any.
Security Awareness - Should be observed to verify an individuals understanding and practice
of good preventive and detective security measures.
Reporting Relationships - Should be observed to ensure that assigned responsibilities and
adequate segregation of duties are being practiced.
Observation Drawbacks - The observer may interfere with the observed environment.
People when observed may change their behaviors.
Statistical Sampling - ANSWER An objective (math based) method of determining the
sample size and selection criteria
Uses the mathematical laws of probability. IS auditor quantitatively decides how closely the
sample should represent the population
Nonstatistical Sampling - ANSWER Use auditor judgement to determine the method of
sampling. These judgements are based on subjective (decision based) judgement as to which
items/transactions are the most material and most risky
Attribute Sampling - ANSWER Sampling model used to estimate the rate of occurrence
of a specific quality in a population. Answers the question of "how many"
Types:
1
, Stop-or-go Sampling - Sampling model that helps prevent excessive sampling of an attribute
by allowing an audit test to be stopped at the earliest possible moment. Used when very few
errors will be found in a population
Discovery Sampling - Sampling model that can be used when the expected occurrence rate is
extremely low. Used when the objective of the audit is to seek out fraud, circumvention of
regulations or other irregularities.
Variable Sampling - ANSWER Technique used to estimate the monetary value or some
other unit of measure of a population from a sample portion.
Types:
Stratified mean per unit - Statistical model in which the population is divided into groups and
samples are drawn from the various groups; used to produce a smaller overall sample size
than unstratified mean per unit
Unstratified mean per unit - A statistical model in which a sample mean is calculated and
projected as an estimated total
Difference Estimation - Statistical model used to estimate the total difference between
audited values and book values based on differences obtained from sample observations.
Confidence Coefficient - ANSWER A percentage expression of the probability that the
characteristics of the sample are a true representation of the population. 95% is considered
a high degree of comfort.
If internal controls are strong, the confidence coefficient may be lowered and the sample
size lowered. The greater the confidence coefficient, the larger the sample size
Expected Error Rate - ANSWER Estimate stated as a percent of errors that may exist.
The greater the expected error rate, the greater the sample size. Applied to attribute
sampling, not variable sampling.
Tolerable Error Rate - ANSWER maximum misstatement or number of errors that can
exist without an account being materially misstated
Sample Mean - ANSWER Sum of all the sample values divided by the size of the
sample. Measures the average.
2
