Chapter 9

9 September 2022
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12 test answers

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question
Which of the following is an element of sampling risk?
answer
Concluding that no material misstatement exists in a materially misstated population.
question
In assessing sampling risk, the risk of incorrect rejection and the risk assessing control risk too high relate to the :
answer
Efficiency of the audit
question
Which of the following statistical sampling techniques is least desirable for use by the audit
answer
Block section
question
To auditors primary objective in selecting a sample of items from an audit population is to obtain
answer
a representative sample
question
Discovery sampling is particularly effective when :
answer
The auditors are looking for critical deviations that are not expected to be frequent in number
question
The auditors are using unstratified mean-per-unit sampling to audit accounts receivable as they did in the prior year. Which of the following changes in characteristics or specifications would result in a larger required sample size this year than that required in the prior year?
answer
Larger variance in the dollar value of accounts
question
Which of the following sampling techniques is typically used for tests of controls?
answer
Attribute sampling
question
Which of the following is accurate regarding tolerable misstatement?
answer
Tolerable misstatement is directly related to materiality
question
In which of the following circumstances is it least likely that tests of controls will be performed?
answer
The expected deviation rate exceeds the tolerable deviation rate
question
An auditor needs to estimate the average highway weight of tractor-trailer trucks using a state's highway system. Which estimation method is more appropriate ?
answer
Mean per unit
question
The auditors have sampled 50 accounts from a population of 1,000 accounts receivable. The sample items have a mean book value of 200 and a mean audited value of 203. the book value in the population is 198000. What is the estimated audited value of the population using the mean-per-unit method?
answer
203,000
question
Using the same facts as in (k) above, what is the estimated total auditted value of the population using the difference method?
answer
201,000