Professional Documents
Culture Documents
Statistical Sampling For Testing Control Procedures Test Bank
Statistical Sampling For Testing Control Procedures Test Bank
2.
3.
4.
143
5.
Confidence level.
Standard error.
ANSWER: A
In order to quantify the risk that sample evidence leads to
erroneous conclusions about the sampled population
a.
Each item in the sampled population must have an equal
chance of being selected.
b.
Each item in the sampled population must have a chance
of being selected proportional to its book value.
c.
Each item in the sampled population must have an equal
or known probability of being selected.
d.
The precise number of items in the population must be
known.
ANSWER:
6.
7.
ANSWER:
9.
12.
11.
10.
144
145
ANSWER:
13.
14.
15.
17.
20.
19.
18.
146
147
ANSWER:
21.
23.
148
25.
27.
28.
149
c.
d.
purposes.
Sampling methods are used by auditors in both control
testing and substantive testing.
Statistical sampling methods are more appropriate for
control testing when the auditor elects to reprocess
transactions, than when controls are tested by means of
document examination.
ANSWER:
29.
31.
random
of the
a.
b.
c.
d.
150
ANSWER:
32.
34.
151
risks is an
example of the risk of underassessment of control
risk?
a.
Failure to properly define the population to be
sampled.
b.
Failure to draw a random sample from the population.
c.
Failure to accept the statistical hypothesis that
internal control is unreliable when, in fact, it is.
d.
Failure to accept the statistical hypothesis that a
book value is not materially misstated when the true
book value is not materially misstated.
ANSWER:
35.
36.
37.
152
38.
39.
153
41.
42.
44.
Block sampling.
Variables sampling.
Attributes sampling.
Discovery sampling.
ANSWER:
45.
154
COMPLETION:
47.
48.
49.
whereas
ANSWER:
50.
SUBJECTIVE
estimates the frequency of events,
is an estimate of amount.
ATTRIBUTE SAMPLING, VARIABLES SAMPLING
The
is the anticipated
error rate, whereas the
is
the maximum rate of error acceptable to the auditor, while
still warranting a lowering of assessed control risk below
the maximum level.
ANSWER:
155
51.
ANSWER:
52.
53.
`
BETA
PROBABILITY
56.
____________
55.
LOWER
54.
NARROWER
SYSTEMATIC SAMPLING
Under conditions of
detection risk, a minimal
quantity of audit evidence is needed.
ANSWER:
HIGH
MATCHING:
57.
Attribute sampling
Alpha risk
Discovery sampling
Beta risk
Expected occurrence rate
Precision
Discovery sampling
Sampling risk
Systematic sampling
Tolerable occurrence rate
Upper occurrence limit
156
Variables sampling
____1.
____2.
____3.
____4.
Risk of underassessment.
____5.
____6.
____7.
____8.
____9.
Risk of overassessment.
A
C
E
D
J
H
I
K
B
F
PROBLEM/ESSAY:
58.
157
1.
2.
3.
4.
5.
6.
7.
8.
9.
SOLUTION:
1.
2.
3.
4.
5.
6.
7.
158
8.
9.
59.
159
60.
1:
2:
3:
4:
7.0%
4.0%
12.0%
6.0%
SOLUTION:
a.
b.
c.
d.
160