AUD - CPA Exam - Audit Sampling || errorless answers
100%.
The auditor faces a risk that the examination will not detect material misstatements which occur
in the accounting process. In regard to minimizing this risk, the auditor primarily relies on
A) Substantive tests.
B) Tests of controls.
C) Internal control.
D) Statistical analysis. correct answers A) Substantive tests.
If the size of the sample to be used in a particular test of attributes has not been determined by
utilizing statistical concepts, but the sample has been chosen in accordance with random
selection procedures
A) No inferences can be drawn from the sample.
B) The auditor has committed a nonsampling error.
C) The auditor may or may not achieve the desired risk of assessing control risk too low.
D) The auditor will have to evaluate the results by reference to the principles of discovery
sampling. correct answers C) The auditor may or may not achieve the desired risk of assessing
control risk too low.
In attribute sampling, a 25% change in which of the following factors will have the smallest
effect on the size of the sample?
A) Tolerable rate of deviation.
B) Number of items in the population.
C) Degree of assurance desired.
D) Planned assessed level of control risk. correct answers B) Number of items in the population.
,When using a statistical sampling plan, the auditor would probably require a smaller sample if
the
A) Population increases.
B) Desired sampling risk decreases.
C) Desired sampling risk increases.
D) Expected error occurrence rate increases. correct answers C) Desired sampling risk increases.
If an auditor, planning to use statistical sampling, is concerned with the number of a client's sales
invoices that contain mathematical errors, the auditor would most likely utilize
A) Random sampling with replacement.
B) Sampling for attributes.
C) Sampling for variables.
D) Stratified random sampling. correct answers B) Sampling for attributes.
An auditor examining inventory may appropriately apply sampling for attributes in order to
estimate the
A) Average price of inventory items.
B) Percentage of slow-moving inventory items.
C) Dollar value of inventory.
D) Physical quantity of inventory items. correct answers B) Percentage of slow-moving
inventory items.
Auditors often utilize sampling methods when performing tests of controls. Which of the
following sampling methods is most useful when testing controls?
, A) Attribute sampling.
B) Variable sampling.
C) Unrestricted random sampling with replacement.
D) Stratified random sampling. correct answers A) Attribute sampling.
When using classical variables sampling for estimation, an auditor normally evaluates the
sampling results by calculating the possible error in either direction. This statistical concept is
known as
A) Precision.
B) Reliability.
C) Projected error.
D) Standard deviation. correct answers A) Precision.
As a result of sampling procedures applied as tests of controls, an auditor incorrectly assesses
control risk lower than appropriate. The most likely explanation for this situation is that
A) The deviation rates of both the auditor's sample and the population exceed the tolerable rate.
B) The deviation rates of both the auditor's sample and the population is less than the tolerable
rate.
C) The deviation rate in the auditor's sample is less than the tolerable rate, but the deviation rate
in the population exceeds the tolerable rate.
D) The deviation rate in the auditor's sample exceeds the tolerable rate, but the deviation rate in
the population is less than the tolerable rate. correct answers C) The deviation rate in the
auditor's sample is less than the tolerable rate, but the deviation rate in the population exceeds the
tolerable rate.
Which of the following statistical selection techniques is least desirable for use by an auditor?
A) Systematic selection.
100%.
The auditor faces a risk that the examination will not detect material misstatements which occur
in the accounting process. In regard to minimizing this risk, the auditor primarily relies on
A) Substantive tests.
B) Tests of controls.
C) Internal control.
D) Statistical analysis. correct answers A) Substantive tests.
If the size of the sample to be used in a particular test of attributes has not been determined by
utilizing statistical concepts, but the sample has been chosen in accordance with random
selection procedures
A) No inferences can be drawn from the sample.
B) The auditor has committed a nonsampling error.
C) The auditor may or may not achieve the desired risk of assessing control risk too low.
D) The auditor will have to evaluate the results by reference to the principles of discovery
sampling. correct answers C) The auditor may or may not achieve the desired risk of assessing
control risk too low.
In attribute sampling, a 25% change in which of the following factors will have the smallest
effect on the size of the sample?
A) Tolerable rate of deviation.
B) Number of items in the population.
C) Degree of assurance desired.
D) Planned assessed level of control risk. correct answers B) Number of items in the population.
,When using a statistical sampling plan, the auditor would probably require a smaller sample if
the
A) Population increases.
B) Desired sampling risk decreases.
C) Desired sampling risk increases.
D) Expected error occurrence rate increases. correct answers C) Desired sampling risk increases.
If an auditor, planning to use statistical sampling, is concerned with the number of a client's sales
invoices that contain mathematical errors, the auditor would most likely utilize
A) Random sampling with replacement.
B) Sampling for attributes.
C) Sampling for variables.
D) Stratified random sampling. correct answers B) Sampling for attributes.
An auditor examining inventory may appropriately apply sampling for attributes in order to
estimate the
A) Average price of inventory items.
B) Percentage of slow-moving inventory items.
C) Dollar value of inventory.
D) Physical quantity of inventory items. correct answers B) Percentage of slow-moving
inventory items.
Auditors often utilize sampling methods when performing tests of controls. Which of the
following sampling methods is most useful when testing controls?
, A) Attribute sampling.
B) Variable sampling.
C) Unrestricted random sampling with replacement.
D) Stratified random sampling. correct answers A) Attribute sampling.
When using classical variables sampling for estimation, an auditor normally evaluates the
sampling results by calculating the possible error in either direction. This statistical concept is
known as
A) Precision.
B) Reliability.
C) Projected error.
D) Standard deviation. correct answers A) Precision.
As a result of sampling procedures applied as tests of controls, an auditor incorrectly assesses
control risk lower than appropriate. The most likely explanation for this situation is that
A) The deviation rates of both the auditor's sample and the population exceed the tolerable rate.
B) The deviation rates of both the auditor's sample and the population is less than the tolerable
rate.
C) The deviation rate in the auditor's sample is less than the tolerable rate, but the deviation rate
in the population exceeds the tolerable rate.
D) The deviation rate in the auditor's sample exceeds the tolerable rate, but the deviation rate in
the population is less than the tolerable rate. correct answers C) The deviation rate in the
auditor's sample is less than the tolerable rate, but the deviation rate in the population exceeds the
tolerable rate.
Which of the following statistical selection techniques is least desirable for use by an auditor?
A) Systematic selection.
