COSO EXAM REVIEW SOLVED QUESTIONS COMPLETE ANSWERS GRADED A PLUS
Question:
Monetary-Unit Sampling (MUS).
Answer:
Selects a sample based on the dollar value of each item within the population.
Question:
Purpose of MUS.
Answer:
Estimate the dollar amount of misstatement for a class of transactions or an account balance.
Question:
Application of MUS.
Answer:
This technique is used extensively and used in substantive testing.
Question:
Classical variables sampling.
Answer:
Selects a sample based on the number of records in a population. Less commonly used.
Question:
Monetary-unit sampling (MUS).
Answer:
,Selects a sample based on the dollar value of each item within the population.
Question:
Attribute (Controls) Testing.
Answer:
The objective of attribute sampling when used for tests of controls is to evaluate the operating
effectiveness of the internal control.
Question:
MUS (Substantive) Testing.
Answer:
Test the reasonableness of assertions about a financial statement. Most common use of sampling for
substantive testing.
Question:
What is the sampling population in attribute testing?
Answer:
All or a subset of the items that constitute the class of transactions.
Question:
How is the population defined in MUS (Substantive Testing)?
Answer:
The monetary value of an account balance.
Question:
What constitutes a sampling unit in attribute testing?
Answer:
, Each sampling unit makes up one item in the population.
Question:
What is the sampling unit in MUS (Substantive Testing)?
Answer:
An individual dollar.
Question:
What defines a control deviation in attribute testing?
Answer:
A departure from adequate performance of the internal control.
Question:
How is a misstatement defined in MUS (Substantive Testing)?
Answer:
The difference between monetary amounts in the entity's records and amounts supported by audit
evidence.
Question:
Desired Confidence Level.
Answer:
The level of assurance that sample results support a conclusion that controls are effective or account
balances are free of material misstatement.
Question:
Standard Confidence Levels.
Answer:
Question:
Monetary-Unit Sampling (MUS).
Answer:
Selects a sample based on the dollar value of each item within the population.
Question:
Purpose of MUS.
Answer:
Estimate the dollar amount of misstatement for a class of transactions or an account balance.
Question:
Application of MUS.
Answer:
This technique is used extensively and used in substantive testing.
Question:
Classical variables sampling.
Answer:
Selects a sample based on the number of records in a population. Less commonly used.
Question:
Monetary-unit sampling (MUS).
Answer:
,Selects a sample based on the dollar value of each item within the population.
Question:
Attribute (Controls) Testing.
Answer:
The objective of attribute sampling when used for tests of controls is to evaluate the operating
effectiveness of the internal control.
Question:
MUS (Substantive) Testing.
Answer:
Test the reasonableness of assertions about a financial statement. Most common use of sampling for
substantive testing.
Question:
What is the sampling population in attribute testing?
Answer:
All or a subset of the items that constitute the class of transactions.
Question:
How is the population defined in MUS (Substantive Testing)?
Answer:
The monetary value of an account balance.
Question:
What constitutes a sampling unit in attribute testing?
Answer:
, Each sampling unit makes up one item in the population.
Question:
What is the sampling unit in MUS (Substantive Testing)?
Answer:
An individual dollar.
Question:
What defines a control deviation in attribute testing?
Answer:
A departure from adequate performance of the internal control.
Question:
How is a misstatement defined in MUS (Substantive Testing)?
Answer:
The difference between monetary amounts in the entity's records and amounts supported by audit
evidence.
Question:
Desired Confidence Level.
Answer:
The level of assurance that sample results support a conclusion that controls are effective or account
balances are free of material misstatement.
Question:
Standard Confidence Levels.
Answer:
