COSO Comprehensive TEST Questions
and
Answers Verified Solutions Latest
Update
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:
In audit practice, the confidence level is generally set at 90% or 95%.
Question:
Confidence Level & Sample Size.
Answer:
A direct relationship: A higher desired confidence level requires a larger sample size.
Question:
Tolerable Deviation Rate.
Answer:
The maximum rate of deviation from a prescribed control that an auditor will accept
while still considering the control effective.
and
Answers Verified Solutions Latest
Update
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:
In audit practice, the confidence level is generally set at 90% or 95%.
Question:
Confidence Level & Sample Size.
Answer:
A direct relationship: A higher desired confidence level requires a larger sample size.
Question:
Tolerable Deviation Rate.
Answer:
The maximum rate of deviation from a prescribed control that an auditor will accept
while still considering the control effective.
