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 CHAPTER 6
SAMPLING AND OVERVIEW OF THE RISK RESPONSE PHASE OF THE AUDIT

SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES

Item LO Item LO Item LO Item LO Item LO Item LO Item LO
True-False Statements
1. E 8 4. E 1 7. M 3 10. M 4 13. M 6
2. M 8 5. M 2 8. M 4 11. M 5 14. M 4
3. M 9 6. M 2 9. M 4 12. E 6 15. M 7
Multiple Choice Questions
16. M 8 22. E 8 28. E 8 34. E 1 40. E 4 46. M 5 52. M 7
17. E 8 23. M 2 29. M 8 35. M 2 41. E 4 47. M 5
18. E 8 24. M 8 30. M 8 36. M 2 42. M 4 48. M 6
19. M 8 25. M 4 31. M 9 37. M 2 43. M 4 49. E 7
20. E 8 26. M 8 32. E 8 38. M 3 44. M 4 50. M 6
21. M 8 27. M 4 33. M 8 39. M 3 45. M 5 51. M 7
Short Answer Questions
53. M 2,3,4,8 54. M 8 55. M 2 56. M 4 57. M 5 58. M 7 59. M 6
Essay Questions
60. M 4 61. M 9 62. M 4
Case
63. 3,4,7

Note — Level of Difficulty: E = Easy M = Medium H = Hard

 6–2 Test Bank for Auditing: A Practical Approach, Second Canadian Edition

SUMMARY OF LEARNING OBJECTIVES BY QUESTION TYPE

Item Type Item Type Item Type Item Type Item Type Item Type Item Type
Learning Objective 3
4. TF 34. MC
Learning Objective 4
5. TF 23. MC 36. MC 53. SA
6. TF 35. MC 37. MC 55. SA
Learning Objective 5
7. TF 38. MC 39. MC 53. SA 63. Ca
Learning Objective 6
8. TF 14. TF 40. MC 43. MC 56. SA 62. ES
9. TF 25. MC 41. MC 44. MC 59. SA 63. Ca
10. TF 27. MC 42. MC 53. SA 60. ES
Learning Objective 7
11. TF 45. MC 46. MC 47. MC 57. SA
Learning Objective 8
12. TF 13. TF 48. MC 50. MC
Learning Objective 9
15. TF 49. MC 51. MC 52. MC 59. SA 63. Ca
Learning Objective 1
1. TF 17. MC 20. MC 24. MC 29. MC 33. MC
2. TF 18. MC 21. MC 26. MC 30. MC 53. SA
16. MC 19. MC 22. MC 28. MC 32. MC 54. SA
Learning Objective 2
3. TF 31. MC 61. ES

Note: TF = True-False SA = Short Answer ES = Essay

MC = Multiple Choice Ca = Case
 Overview of tests of controls, substantive procedures and sampling 6–3

CHAPTER STUDY OBJECTIVES

1.Explain how audit sampling is used in an audit. When creating an audit plan and designing
audit procedures, an auditor also decides how to select appropriate items for testing. When
there are numerous transactions or items within an account balance available for testing, an
auditor must decide how best to select a sample that is representative of the entire population of
items available for testing.

2. Understand the difference between sampling and non-sampling risk. Sampling risk is
the risk that the sample chosen by the auditor is not representative of the population of
transactions or items within an account balance available for testing and, as a consequence, the
auditor arrives at an inappropriate conclusion. Non-sampling risk is the risk that an auditor
arrives at an inappropriate conclusion for a reason unrelated to sampling issues, such as an
auditor using an inappropriate audit procedure.

3. Differentiate between statistical and non-statistical sampling. Statistical sampling

involves random selection and probability theory to evaluate the results. Non-statistical sampling
is any sample selection method that does not have these characteristics.

4. Describe sampling methods and the factors to be considered when choosing a

sample. Sampling methods include random selection, systematic selection, haphazard
selection, block selection, and judgemental selection. Before selecting a sample, an auditor will
set parameters pertaining to control and detection risk, planning materiality, population,
tolerable error rate, and the required level of confidence. Once these parameters are set, an
auditor may select a sample using a statistical or non-statistical sampling technique.

5. Determine the factors that influence the sample size when testing controls. When
testing controls, the factors that influence the sample size include the extent to which the risk of
material misstatement is reduced by the operating effectiveness of controls, the rate of deviation
from the prescribed control activity that the auditor is willing to accept, the rate of deviation from
the prescribed control activity that the auditor expects to find in the population, the auditor’s
required confidence level, and the number of sampling units in the population.

6. Determine the factors that influence the sample size when substantive testing. When
conducting substantive testing of transactions and balances, the factors that influence the
sample size include the auditor’s assessment of the risk of material misstatement, the use of
other substantive procedures directed at the same assertion, the auditor’s required confidence
level, the tolerable error, the amount of error the auditor expects to find in the population, the
stratification of the population, and the number of sampling units in the population.

7. Outline how to evaluate the results of tests conducted on a sample. When testing
controls, the auditor will compare the rate of deviation with the tolerable rate of deviation and
determine whether they believe that the control tested is effective in preventing and/or detecting
6–4 Test Bank for Auditing: A Practical Approach, Second Canadian Edition

a material misstatement. When testing transactions and balances, the error in the sample will be
projected onto the population and then compared to the tolerable error rate. The auditor will
then determine whether the class of transactions or account balance being tested appears to be
materially misstated.

8. Understand the difference between tests of controls and substantive tests. The purpose
of tests of controls is to assess the effectiveness of a client’s system of internal controls
throughout the accounting period being audited. The purpose of substantive testing is to gather
direct evidence that the financial statements are free from material misstatement.

9. Explain the factors that impact the nature, timing, and extent of audit testing. The
nature of audit testing refers to the purpose of the test and the procedure used. The timing of
audit testing refers to the stage of the audit when procedures are performed and the date, such
as within or outside the accounting period, that audit evidence relates to. The extent of audit
testing refers to the amount of audit evidence gathered when testing controls and conducting
detailed substantive procedures.
 Overview of tests of controls, substantive procedures and sampling 6–5

TRUE-FALSE STATEMENTS

1. An audit plan includes the audit procedures to be used when testing controls and when
conducting detailed substantive audit procedures.

2. Tests of controls are audit procedures designed to detect material misstatements at the
assertion level.

3. The timing of audit testing refers to the stage of the audit when procedures are performed
and the date that audit evidence relates to.

4. Sampling is required when an audit procedure is tested on an entire group of transactions or

all items within an account balance.

5. Sampling risk is the risk that the sample chosen by the auditor is not representative of the
population available for testing.

6. The risk that the auditor concludes that a material misstatement exists when it does not is
likely to result in an increase in audit effort when it is not required.

7. Non-statistical sampling involves random selection and probability theory to evaluate the
results.

8. Stratification is when an auditor selects a sample for testing by dividing the number of
population items by the sample size, resulting in the sampling interval.

9. Block selection involves the selection of items that are grouped together within the population
of items available.

10. Tolerable error is the minimum error an auditor is willing to accept within the population
tested.

11. An increase in the number of sampling units in the population will result in a decrease in the
sample size.

12. When auditors conclude that an internal control is effective, they will rely on the control to
prevent and detect a material misstatement and reduce their detailed substantive procedures.
6–6 Test Bank for Auditing: A Practical Approach, Second Canadian Edition

13. When conducting substantive testing, an increase in the auditor's assessment of the risk of
material misstatement will result in an increase in the size of the sample.

14. Stratification of the population will result in less efficient sampling and increase the sample
size required.

15. Projected error refers to the extrapolation of the errors detected when testing a sample to
the population from which the sample was drawn.
 Overview of tests of controls, substantive procedures and sampling 6–7

ANSWERS TO TRUE-FALSE STATEMENTS

Item Ans. Item Ans. Item Ans. Item Ans. Item Ans. Item Ans. Item Ans.
1. T 4. F 7. F 10. F 13. T
2. F 5. T 8. F 11. F 14. F
3. T 6. T 9. T 12. T 15. T
6–8 Test Bank for Auditing: A Practical Approach, Second Canadian Edition

MULTIPLE CHOICE

16. Vita Zitkauskas, the senior on the audit of Magna International, was explaining how audit
strategy and audit plans have an impact on tests of controls and substantive procedures. She
made two statements:
(i) Audit strategy details the audit procedures to be used when testing controls and
when conducting detailed substantive audit procedures.
(ii) The audit plan provides the basis for developing an audit strategy.
Which statements were true, if any?
a) (i) only
b) (ii) only
c) (i) and (ii)
d) neither (i) or (ii)

17. Henrietta Lombardi assessed control risk to be low. What is the appropriate audit strategy
she should adopt?
a) predominantly substantive audit approach
b) control testing strategy
c) combined audit strategy
d) substantive year end testing

18. Oliver DiPietro was testing the controls of Blue Coast Wholesale Fish Market. When testing
controls, which one of the following evidence gathering procedures is used?
a) vouching of transactions
b) confirmations of accounts receivable
c) tracing of transactions to source documents
d) enquiry of client personnel

19. Michael Fernandez has decided to perform substantive procedures at a major retailer.
Which one of the following is not a substantive procedure?
a) re-performing control procedures to test their effectiveness
b) inspecting documents to verify the dates of the transactions
c) bank confirmations regarding interest rates on borrowings by client
d) recalculating an interest expense using confirmed interest rates

20. Ricky Alfaro wanted to ensure that all the transactions at his client were recorded. For
which assertion was he conducting these detailed substantive procedures?
a) occurrence
b) completeness
c) cut-off
d) none of the above
 Overview of tests of controls, substantive procedures and sampling 6–9

21. Milushka Icaza, who was representing her CPA firm at a conference, made the following
statement about assertions: When our auditors conduct substantive procedures, we search for
evidence that recorded accounts exist and that all accounts that should have been recorded,
indeed have been recorded. Which assertions was she talking about?
a) rights and obligations and recording
b) valuation and allocation and recording
c) occurrence and completeness
d) none of the above

22. Richard Nucci used analytical procedures at his client, Ultimate Vacations. Which one of
these is not an analytical procedure?
a) Send confirmations to major customers.
b) Estimate revenue for Ultimate Vacations by multiplying trips sold by average price of vacation
packages.
c) Discuss unusual fluctuations with client personnel.
d) Compare wages month by month for this year and last year.

23. Walter Polonia was explaining to his junior staff the implications of sampling risk when
conducting substantive testing. He made the following two statements:
(i) “If we conclude that a material misstatement does not exist when it does, then we
have an increased control risk.”
(ii) “If we conclude that a material misstatement exists when it does not we have an
inefficient audit.”
Which statements, if any, were true?
a) (i)
b) (ii)
c) (i) and (ii)
d) neither (i) or (ii)

24. Christopher Mikos has been involved in testing controls at Highbridge Falls. Which of these
control tests would be deemed ineffective?
a) reading a client’s policy manual
b) entering invalid passwords to see whether access is denied
c) both a and b
d) none of the above are effective controls

25. Daniel Beauchamp did not perform a true sample when he went to his client to examine
sales invoices. He did not use any specific method for choosing the invoices. He let his eye
catch the items he thought might make up his sample. What technique did he use?
a) random selection
b) block selection
c) haphazard selection
d) stratified sample selection
6 – 10 Test Bank for Auditing: A Practical Approach, Second Canadian Edition

26. Lucy Pelletier was training a team of new auditors and delivered some interesting rules of
thumb about control risk and detection risk:
(i) “The required level of confidence is a function of control risk when testing controls
and detection risk when conducting substantive tests.”
(ii) “When detection risk is determined to be low, an auditor will require a low level of
confidence that the transactions and accounts are not materially misstated.
Which of the above two statements are true?
a) (i) only
b) (ii) only
c) both (i) and (ii)
d) neither (i) or (ii)

27. George Melkonian wanted to determine whether his auditing class knew how different
factors influence sample size. He made two statements:
(i) “An increase in the expected rate of deviation of the population to be tested will
decrease sample size.”
(ii) “An increase in the tolerable rate of deviation will decrease sample size.”
George asked his class to indicate which of the statements, if any, were false.
a) (i)
b) (ii)
c) (i) and (ii) are false
d) neither of the two statements is false

28. Control risk is the risk that:

a) an auditor expresses an inappropriate audit opinion when a financial statement is materially
misstated.
b) an auditor's substantive procedures will not detect material misstatements.
c) a client's system of internal controls will not prevent or detect a material misstatement.
d) none of the above.

29. Tests of controls are conducted to establish that:

a) controls operate consistently throughout the period.
b) there are no material misstatements in the financial statements.
c) controls operate effectively.
d) both a and c.

30. When conducting detailed substantive procedures, auditors search for evidence that:
a) the client's internal control system is operating effectively.
b) all transactions have been recorded in the correct accounts.
c) no fraud has occurred during the year.
d) they have remained independent of their clients.

31. For high-risk accounts, the timing of most audit procedures will be:
a) whenever the client says it is most convenient for them to be conducted.
b) at, or after, year-end.
c) before year end.
 Overview of tests of controls, substantive procedures and sampling 6 – 11

d) during the interim audit testing stage.

32. Substantive audit procedures include:

a) detailed tests of balances.
b) analytical procedures.
c) detailed tests of transactions.
d) all of the above.

33. When control risk is high, the audit strategy is to:

a) do little or no tests of controls and increase reliance on substantive testing of transactions
and account balances.
b) assume the client's management is dishonest and immediately report them to the Canada
Revenue Agency (CRA).
c) increase reliance on tests of controls and reduce reliance on substantive testing of
transactions and account balances..
d) refuse to continue with the remainder of the audit due to the high risk of fraud.

34. Sampling is not required when:

a) it is the first year that the auditor has done the audit for a client.
b) the auditor is conducting tests of controls.
c) an audit procedure is conducted on an entire group of transactions.
d) the client requests the auditor not to collect samples of certain transactions.

35. When testing controls, sampling risk is the risk that the auditor:
a) concludes that their client's internal controls are ineffective when they are effective.
b) concludes that their client's internal controls are effective when they are ineffective.
c) both a and b.
d) none of the above.

36. Non-sampling risk arises when an auditor:

a) does not use sampling.
b) uses an inappropriate audit procedure.
c) tests all of the items in a population.
d) spends too much time testing the accounts most at risk of material misstatement.

37. When testing controls, non-sampling risk is the risk that an auditor:
a) designs tests that are ineffective.
b) does not select a sample.
c) both a and b.
d) none of the above.

38. Which of the following statements regarding statistical sampling is correct?

a) It is easier to use than non-statistical sampling.
b) It involves haphazard selection.
6 – 12 Test Bank for Auditing: A Practical Approach, Second Canadian Edition

c) It is generally used for low risk accounts.

d) It involves random selection.

39. Which of the following is not an advantage of non-statistical sampling?

a) It allows an auditor to select a sample that they believe is appropriate.
b) It allows an auditor to measure sampling risk.
c) It is lower cost than statistical sampling.
d) It requires less staff training.

40. Random selection involves:

a) dividing a population into groups of sampling units with similar characteristics.
b) the selection of a sample without the use of a methodical technique.
c) the selection of a sample that is free from bias and where each item in a population has an
equal chance of selection.
d) the selection of items that an auditor believes should be included in their sample for testing.

41. Which sampling method involves the selection of items that are grouped together within the
population of items available?
a) systematic selection
b) haphazard selection
c) random selection
d) block selection

42. When testing controls, the tolerable error is:

a) the tolerable rate of deviation that an auditor will accept before concluding that a control is
effective.
b) the minimum rate of deviation that an auditor will accept.
c) the tolerable rate of deviation that an auditor will accept before concluding that a control is
ineffective.
d) the maximum amount of error in an account balance that an auditor will accept before
concluding that an account is materially misstated.

43. Which of the following statements is incorrect?

a) When detection risk is set as high, an auditor will require a high level of confidence that the
transactions and accounts are not materially misstated.
b) An auditor may decide to stratify the population before selecting a sample .from it.
c) An auditor will use professional judgment to determine the tolerable error and required level
of confidence.
d) An auditor will use professional judgment when considering what would be considered an
error within the population tested.

44. Before selecting a sample, an auditor will use professional judgment to:
a) set the required level of confidence.
b) set the tolerable error rate.
c) select an appropriate population for testing.
 Overview of tests of controls, substantive procedures and sampling 6 – 13

d) all of the above.

45. Which of the following is a factor that influences the sample size when testing controls?
a) an increase in the auditor's assessment of the risk of material misstatement
b) an increase in the tolerable rate of deviation
c) stratification of the population when appropriate
d) an increase in tolerable misstatement

46. When testing controls, a decrease in the sample size will occur when there is:
a) an increase in the tolerable rate of deviation.
b) a decrease in the tolerable rate of deviation.
c) an increase in the extent to which the auditor's risk assessment takes into account relevant
controls.
d) an increase in the number of sampling units in the population.

47. What impact will there be on sample size when there is an increase in the number of
sampling units in the population?
a) increase
b) decrease
c) negligible
d) none of the above

48. When conducting substantive testing, which of the following is not a factor that influences
the sample size?
a) an increase in the tolerable rate of deviation
b) an increase in the auditor's assessment of the risk of material misstatement
c) stratification of the population when appropriate
d) an increase in tolerable misstatement

49. An account is at a higher risk of misstatement when it requires:

a) complex calculations.
b) estimation.
c) both a and b.
d) simple valuation techniques.

50. What impact will there be on sample size for substantive testing when there is an increase in
the tolerable misstatement?
a) decrease
b) negligible
c) increase
d) none of the above
6 – 14 Test Bank for Auditing: A Practical Approach, Second Canadian Edition

51. When evaluating sample test results, which of the following statements is incorrect?
a) If an auditor discovers errors when testing transactions or account balances, they will need to
project the error to the population being tested.
b) An auditor will not consider whether the population was stratified before being sampled.
c) If an error is considered to be unique it will be removed before projecting remaining errors to
the population.
d) If the rate of deviation exceeds the tolerable rate the auditor will extend their testing.

52. If the total projected error in an account balance was $3,248 and the tolerable error was set
at $10,000, the auditor would:
a) conclude that the errors uncovered are material.
b) decide that further audit work was required.
c) conclude that the errors detected are not material.
d) conduct other tests aimed at the assertion being tested.
 Overview of tests of controls, substantive procedures and sampling 6 – 15

ANSWERS TO MULTIPLE CHOICE QUESTIONS

Item Ans. Item Ans. Item Ans. Item Ans. Item Ans. Item Ans. Item Ans.
16. d 22. a 28. c 34. c 40. c 46. a 52. c
17. c 23. b 29. d 35. c 41. d 47. c
18. d 24. a 30. b 36. b 42. c 48. a
19. a 25. c 31. b 37. a 43. a 49. c
20. b 26. a 32. d 38. d 44. d 50. a
21. c 27. a 33. a 39. b 45. b 51. b
6 – 16 Test Bank for Auditing: A Practical Approach, Second Canadian Edition

SHORT ANSWER QUESTIONS

SA 53
Indicate whether you agree or disagree with the following statements and explain your
reasoning.
a) Karen Elliott was explaining to her group partner that the completeness assertion implies
that transactions and events that have been recorded have occurred and pertain to the
entity.
b) Joseph Cabana was explaining to Carl Metz how sampling risk works for the audit team:
“Sampling risk is the risk that as auditors we will arrive at a conclusion that has nothing to
do with sampling issues.”
c) Robert Scardera was vehemently arguing about the benefits of using non-statistical versus
statistical sampling methods for a client in the excavation business. Here is what he had to
say about non-statistical sampling: “Non-statistical sampling is easier to use than statistical
sampling, it requires less staff training, it has lower cost, and it allows an auditor to make a
sample choice that they believe is appropriate.”
d) Elaine Mathers has started her sample selection of sales transactions for a gemstone
conglomerate. She believes that she can improve audit efficiency by stratifying the sample.

Solution:
a) Disagree. The occurrence assertion implies that transactions and events that have been
recorded have occurred and pertain to the entity. The completeness objective infers that all
transactions that should have been recorded, indeed have been recorded.

b) Disagree. Joseph Cabana was describing non-sampling risk. Sampling risk is the risk that
an auditor will conclude that a material misstatement exists when it does not or a material
misstatement does not exist when it does.

c) Agree. All the elements Robert brings up are generally true. Statistical sampling can have
the disadvantage of the cost involved in using it. Most audit firms use a combination of
statistical and non-statistical sampling as both methods provide appropriate audit evidence
and allow the auditor to form a conclusion on the items being tested.

d) Agree. Stratification can be used ahead of random selection to improve audit efficiency.
This means that an auditor partitions a population ahead of sampling, by identifying sub
populations with similar characteristics. For example, for accounts receivable, the auditor
may stratify high dollar items or balances that are overdue. After stratifying a population,
items can be randomly selected within each stratum. Thus, stratification can be used to
ensure the sample includes items that have the characteristics required by the auditor, such
as the inclusion of material or risky items in the sample, while remaining a statistical
sampling technique, when items are randomly selected.
 Overview of tests of controls, substantive procedures and sampling 6 – 17

SA 54
Explain the differences between the main objectives of tests of controls and substantive
procedures.

Solution:
Tests of controls are conducted to establish that controls: operate effectively, meaning that the
rate of deviation from prescribed control procedures are minimized and controls effectively
prevent and detect material misstatements, and operate consistently throughout the accounting
period.

When conducting detailed substantive procedures, an auditor searches for evidence that
recorded transactions occurred and relate to the client (occurrence assertion), that all
transactions have been recorded (completeness assertion), that all transactions have been
recorded at appropriate carrying amounts (accuracy assertion), that all transactions have been
recorded in the correct accounting period (cut-off assertion) and that all transactions have been
recorded in the correct accounts (classification assertion). Detailed substantive procedures also
involve an auditor searching for evidence that recorded accounts such as assets, liabilities and
equity accounts exist (existence assertion), that all accounts that should have been recorded
have been recorded (completeness assertion), that recorded accounts represent items owned
by the client or amounts owed by the client to third parties (rights and obligations assertion) and
that recorded accounts appear at appropriate carrying amounts (valuation and allocation
assertion).

SA 55
Explain sampling risk as it relates to both tests of controls and substantive procedures.

Solution:
Sampling risk is the risk that the sample chosen by the auditor is not representative of the
population of transactions or items within an account balance available for testing and, as a
consequence, the auditor arrives at an inappropriate conclusion. When testing controls,
sampling risk is the risk that an auditor relies on their client's system of internal controls when
they should not do so (that is, the auditor concludes that their client's internal controls are
effective when they are ineffective), and the risk that an auditor concludes that their client's
internal controls are less reliable than they really are (that is, the auditor concludes that their
client's internal controls are ineffective when they are effective). When conducting substantive
tests, sampling risk is the risk that an auditor concludes that a material misstatement does not
exist when it does or an auditor concludes that a material misstatement exists when it does not.

SA 56
Describe the major types of sampling techniques available to auditors.

Solution:
There are a range of sampling techniques available to auditors which include random selection,
systematic selection, haphazard selection, block selection and judgment selection. Random
selection requires that the person selecting the sample does not influence the choice of items
selected. The resulting sample is then free from bias and each item within the population has an
equal chance of being selected for testing. Random number generators can be used to select a
sample. Systematic selection involves the selection of a sample for testing by dividing the
6 – 18 Test Bank for Auditing: A Practical Approach, Second Canadian Edition

number of items in a population by the sample size, resulting in the sampling interval (n). Once
the sampling interval has been determined a starting point is selected, which is an item in the
population below the sampling interval, and then the sample is selected by selecting the first
item and then every nth item after that. Haphazard selection involves the selection of a sample
by an auditor without using a methodical technique. Block selection involves the selection of
items that are grouped together within the population of items available. Judgmental selection
involves the selection of items that an auditor believes should be included in their sample for
testing. When testing controls, judgment may be used to ensure that transactions processed
when a new computer is installed are included in the sample. When conducting substantive
testing, judgment may be used to include in the sample large or unusual items.

SA 57
Identify and explain the factors that influence the sample size for tests of controls.

Solution:
There are a number of factors that will influence the sample size when testing controls. The first
factor is an increase in the extent to which the risk of material misstatement is reduced by the
operating effectiveness of controls. If an auditor believes that a control will be effective in
reducing an identified risk of material misstatement, their audit strategy will be to increase
testing of that control to ensure it is effective. When concluding that a control is effective, an
auditor will rely on that control to prevent and detect a material misstatement, and reduce their
detailed substantive procedures. The second factor is an increase in the rate of deviation from
the prescribed control activity that the auditor is willing to accept. There is an inverse
relationship between the tolerable rate of deviation and sample size. If an auditor intends to rely
on a control to prevent and detect a material misstatement, a lower tolerable error rate will be
set and the sample size will be increased to provide the auditor with the evidence required to
demonstrate that the control is effective. If an auditor expects to place relatively more reliance
on their substantive procedures and reduce their reliance on an internal control, they will
increase the tolerable rate of deviation and reduce the sample size when testing the control.
The third factor is an increase in the rate of deviation from the prescribed control activity that the
auditor expects to find in the population. If an auditor believes that the rate of deviation has
increased when compared to prior audits, they will increase the sample size to accurately
evaluate the impact of the changed circumstances. The fourth factor is an increase in the
auditor's required confidence level. When control risk is assessed as low for a risk factor, an
auditor's required level of confidence in the effectiveness of their client's internal control is
higher than when control risk is assessed as medium to high. If an auditor is to rely on their
client's internal control procedures to prevent or detect an identified material misstatement, their
required confidence level in that control increases and they will increase the sample size when
testing that control. The fifth and final factor is an increase in the number of sampling units in the
population. When a population is large and fairly homogenous, there is little benefit from
continuing to increase the sample size as the results from continued testing should confirm early
findings.

SA 58
Explain how auditors evaluate the results of tests of controls conducted on a sample.

Solution:
After an auditor has completed their audit testing, the next stage is to evaluate the results.
When testing controls, an auditor will consider whether the results of their tests applied to a
 Overview of tests of controls, substantive procedures and sampling 6 – 19

sample provide evidence that the control tested is effective within the entire population. If an
auditor discovers departures from prescribed controls when testing controls, a deviation rate will
be calculated. The deviation rate is the proportion of departures within the sample. If the sample
is representative of the population, the auditor will compare this deviation rate with their
tolerable rate of deviation. If the rate of deviation exceeds the tolerable rate, the auditor will
extend their testing and gather further evidence of other controls that may be aimed at reducing
the identified risk of material misstatement. If after conducting more testing the auditor finds that
the rate of deviation remains consistent with their initial findings and other controls are similarly
ineffective, the auditor will conclude that the client's system of internal controls cannot be relied
upon to prevent or detect a potential material misstatement and the auditor will increase their
reliance on their substantive tests of the account tested.

SA 59
CGA-CANADA AUDITING 1 EXAMINATION Dec 2001 — Question 2

Explain the differences between attribute sampling and sampling for substantive testing
purposes, in terms of the auditor’s purpose, the definition of exceptions, and the relevance of
materiality to the techniques.

Solution:

Attribute Sampling Substantive Testing

Sampling

Auditor purpose It confirms whether or not It provides direct substantive

control objectives are met in evidence for financial
order to assess control risk, statement
but provides no direct assertions
evidence about financial
statements

Definition of exceptions An error is the failure to apply An error is where a

a control procedure. It is a
“yes or no” determination that
results in
an exception rate.
transaction is recorded in the
wrong amount or to the
wrong account. It can
be quantified in monetary
terms.
It is often described with
reference to materiality.

Materiality Materiality is not relevant. It The aggregate and projected

is the tolerable deviation rate
that is used to evaluate
results.
monetary errors must be
considered in light of
materiality (as both
quantitatively and
qualitatively defined). They
may be quantified as a
“tolerable misstatement.”
6 – 20 Test Bank for Auditing: A Practical Approach, Second Canadian Edition

Source: Question 2, CGA-CANADA AUDITING 1 EXAMINATION, Dec 2001. ©2015 CPA Canada. This
item is reproduced here for your use with the permission of the Chartered Professional Accountants of
Canada. It should not be copied or distributed in any form as this would cause an infringement of
Chartered Professional Accountants of Canada's copyright.
Another random document with
no related content on Scribd:
[Contents]
Legend of Aiai.
Kuula was the father and Hina
was the mother of Aiai. They
lived in Niolopa, 1 Nuuanu. Kuula
and his wife were great fisher
folks, and they had in their
possession a pearl fish-hook of
great value 2 called Kahuoi. This
pearl fish-hook was in the
keeping of a bird called
Kamanuwai and it was kept at
Kaumakapili. 3 This pearl fish-
hook was so enticing that every
time Kuula went out for aku,
outside of Mamala, 4 upon seeing
the hook they would jump into
the canoes of their own accord.
This fish was the food which this
bird lived on. [556]
While Kuula was out for aku one
day, outside of Mamala,
Kipapalaulu the king of Honolulu,
also went out fishing; and when
Kaao no Aiai.
O Kuula ka makuakane o Hina
ka makuahine, o Aiai ke keiki, o
Niolopa i Nuuanu ka aina. He
mau lawaia o Kuula me kana
wahine o Hina, na laua ka pa ai,
o Kahuoi ka inoa. O ka manu, o
Kamanuwai, ke kiai o ua pa nei
o Kahuoi; o kahi e waiho ai o ua
pa nei o Kaumakapili; he pa ai o
Kahuoi. Ke holo o Kuula i ka hi
aku i waho o Mamala, na ke aku
no e pii a e komo na waa, a o ka
ai no hoi ia a ua manu nei o ka
ia. [557]
I kekahi holo ana a Kuula i ka hi
aku, i waho o Mamala, holo aku
o Kipapalaulu, ke ’lii o Honolulu i
ka lawaia, ike oia i ka pii o ke
he came near the place where
Kuula 5 was fishing, he saw the
aku jumping into the canoes of
Kuula of their own accord. Upon
seeing this he made up his mind
to steal this fish-hook, Kahuoi,
which in due time was carried
out. This act not only deprived
Kuula of his favorite hook, but
the bird also hungered from loss
of its food. Through this seizure
of the pearl hook by Kipapalaulu
the bird went without any food, it
would fly on its roosting place
and go to sleep. It was because
the bird, Kamanuwai, closed its
eyes from hunger was the
reason why the place where it
lived was called Kaumakapili, 6
and the place is so called to this
day.
Some time after this Hina
conceived and in due time gave
birth to a male child, who was
called Aiai. At the birth of the
child the parents threw it into the
stream just below Kaumakapili.
The water carried the child to a
rock called Nahakaipuami, just
below the Haaliliamanu bridge,
where it is seen to this day (of
writing), where it floated.
aku i na waa o Kuula, lawe aihue
oia i ka pa, ia Kahuoi, lilo iaia,
nele o Kuula i ka pa, a pololi no
hoi ka manu i ka ai ole. Ma keia
lilo ana o ka pa, ia Kipapalaulu,
nele iho la ka manu i ka ia ole e
ai ai. Nolaila, kapaia o
Kaumakapili i ka pili o na maka o
ka manu o Kamanuwai, a hiki i
keia la. Nolaila, kela inoa o
Kaumakapili.
Hapai o Hina, a hanau he keiki
kane o Aiai, kiola iho la laua i
loko o ka muliwai e waiho la ma
lalo o Kaumakapili, lawe ae la ka
wai a hiki i ka uapo a
Hooliliamanu makai iho. Aia ilaila
he pohaku o Nahakaipuami kona
inoa, e waiho nei a hiki i keia la,
maluna o ia pohaku o Aiai i lana
ai. Ma Kapuukolo na hale o
Kipapalaulu e ku ana, me kana
Kipapalaulu was at this time
living at Kapuukolo, 7 where his
palace was situated, with his
daughter, Kauaelemimo by
name. One day at noon she
went in bathing with her maids
and discovered Aiai by a large
rock. Kauaelemimo took the
child as her own and brought it
up.
When Aiai grew into manhood
he was very handsome; so
Kauaelemimo took him to be her
husband. After a while she
conceived a child and she began
to have a longing for some fish;
so Aiai went out rod fishing along
the coast and after catching a
few took the fish home and gave
them to his wife. After the lapse
of some twenty or thirty days,
Kauaelemimo had a longing for
aku; so she told Aiai to go out
aku fishing. Aiai upon hearing his
wife’s request asked her to go to
her father, Kipapalaulu and ask
him for a pearl fish-hook. The
wife consented to this and went
to her father. Upon coming in her
father’s presence, he asked her:
“What is it you want?” “I have
come for a pearl fish-hook for my
kaikamahine, o Kauaelemimo ka
inoa. I ke awakea, hele o
Kauaelemimo e auau me kona
mau wahine, loaa iho la o Aiai e
waiho ana, lawe ae la o
Kauaelemimo i keiki nana, a
hanai iho la.
A nui o Aiai, he keiki maikai loa
ke nana aku, lawe ae la no o
Kauaelemimo i kane nana, a
moe iho la. A hapai o
Kauaelemimo, ono iho la ia i ka
ia, hele aku la o Aiai i ke
kamakoi ma kela wahi i
Halekuke, a loaa na ia hoi mai la
ai ka wahine. A hala he mau
anahulu, ono o Kauaelemimo i
ke aku, olelo aku ia Aiai, e holo i
ka hi aku; olelo mai o Aiai: “O
hele i pa i ko makuakane ia
Kipapalaulu.” Ae aku ka wahine,
hele aku la ia a hiki i mua o
Kipapalaulu. Ninau mai o
Kipapalaulu: “Heaha kau?” “I
hele mai nei au i pa na kuu
kane.” “Ae, he pa, eia ka pa.”
Hoi aku la ka wahine a hiki,
haawi aku la i ka pa ia Aiai.
Olelo mai o Aiai: “Aohe loaa a
husband.” “Yes, here is a pearl
fish-hook.” Kauaelemimo took it
and returned to her husband.
When Aiai saw the fish-hook, he
said: “This pearl fish-hook is
worthless, the fish will not bite it;
it will weary one’s body for
nothing.” The wife then asked
him: “Where can I get another
pearl fish-hook then?” Aiai
replied: “You go to your father
and tell him there is a pearl fish-
hook that will enrich the
fishermen. It is in the fishermen’s
calabash of fishing utensils.” By
this the husband wished to get
possession of the pearl fish-hook
Kahuoi which had been stolen
from his father by Kipapalaulu.
Upon coming to her father she
asked for another pearl fish-
hook. Kipapalaulu refused,
saying: “There is none left to
give; that was the last pearl fish-
hook I had which I gave you.”
Kauaelemimo said: “Aiai told me,
you had another one; it is in the
fishermen’s calabash of fishing
utensils.” “Yes, certainly there is
one. I now remember it for the
first time.” The calabash was
then brought to the king and
keia pa; he pa ai ole, hoeha kino
i keia pa.” A olelo mai ka wahine:
“A auhea la auanei ka pa?” I aku
o Aiai: “O hele a ko makuakane
olelo aku, he pa no, aole e nele
ka lawaia i ka pa, aia iloko o ka
ipu holoholona a ka lawaia.” O
ko Aiai manao ma keia olelo i ka
wahine, i loaa ka pa o Kahuoi, a
kona makuakane, i aihue ia ai e
Kipapalaulu.
A hiki ke kaikamahine i mua o
Kipapalaulu, nonoi aku i pa e
haawi hou mai, hoole mai o
Kipapalaulu: “Aohe pa i koe; o
ka pau ae la no ia o na pa.” I aku
o Kauaelemimo: “Ka! Olelo mai
nei o Aiai, he pa no, aia ka iloko
o ka ipu holoholona a ka lawaia.”
“Ae, he pa io, akahi au a
manao.” Kiina aku la a lawe ia
mai la, i nana iho ka hana, he
pa. Lawe aku la ka wahine a
mua o Aiai, lalau mai la o Aiai a
when he looked in it he found the
hook which he gave to his
daughter. The wife then returned
with it to her husband. Aiai took it
and said: “My days of poverty 8
are now [558]over since you have
come back.” Aiai then said to his
wife: “Go back again to your
father and ask him for a canoe;
not one of five or eight fathoms
in length, but get one that is ten
fathoms in length; that is the size
of the canoe that I want from
your father.” When Kauaelemimo
arrived in the presence of her
father, she asked for the canoe
described by her husband. When
the canoe ten fathoms in length
was brought the father asked the
daughter: “Who will be able to
paddle this canoe?” “My
husband will.” When Aiai heard
the answer made by his wife, he
took the canoe and set out with
the bird, Kamanuwai, taking the
pearl fish-hook, Kahuoi, along.
When he arrived off of Mamala
he took out the hook and began
fishing. The aku began to come
and jump into the canoe of their
own accord until it was loaded
down deep. The bird then eat
some of the fish and was again
olelo iho la: “Ola na iwi ua hoi
mai nei oe.” [559]
I aku o Aiai i ka wahine: “E hoi
hou oe i waa no’u; aole ka waa
elima anana ka loa, a e walu, o
ka waa he umi anana ka loa. Oia
ka waa au e olelo aku ai i ko
makuakane.” A hiki ka wahine
imua o Kipapalaulu, nonoi aku la
i waa, a hiki i ka waa umi anana
ka loa. Olelo mai ka makuakane:
“Nawai e hoe e hiki ai keia
waa?” “Na kuu kane no.” A lohe
o Aiai i ka olelo a kana wahine
kii aku la ia a lawe mai la i ka
waa, holo aku la ia me ka manu,
o Kamanuwai, a me ka pa o
Kahuoi, a waho o Mamala, wehe
ka pa a lawaia, na ke aku no i pii
a komo ka waa, ai iho la ka
manu a ola ae la. Hoi mai la o
Aiai, ua piha na waa i ke aku, a
hiki i mua o ka wahine, haawi
aku la i ka ia, o ua pa nei lilo aku
la ia Kamanuwai ke kiai. Pela ke
kaao no Aiai. [558]
restored to its former self. When
Aiai came home his double
canoe was loaded down deep
with aku. Upon arriving in the
presence of his wife he gave her
all the fish, but the pearl fish-
hook was taken by the bird,
Kamanuwai, its guardian. This is
the legend of Aiai. [555]

1 That section of Nuuanu Valley in the

neighborhood of Wyllie Street. ↑
2 Its great value lay in the fact that it
was specially attractive to the fish
desired, the aku. ↑
3 That section of Honolulu above
Beretania Street, from Nuuanu to the
stream, as it used to run. ↑
4 Mamala, Honolulu harbor entrance.
Kou was the harbor itself. ↑
5 Kuula was deified upon his death at
the cruel hands of Hua of Maui,
according to tradition, that he became
the god of fishermen to whom the koas
around Oahu, Maui, and other islands
are dedicated, and though these
outward evidences of idolatrous
practice have passed away, the inward
feeling of recognition of this god’s claim
on their effort is still stronger among the
old fishermen than they are willing to
admit. ↑
6 Kaumakapili, roosting with closed
eyes. ↑
 Kapuukolo, from about the site of the
7
present King Street market to River
Street and the stream. ↑
8 Another interpretation of the ola na
iwi expression. ↑
[Contents]
Legend of
Pupualenalena.
Pupualenalena was a dog that
once lived in Puako, Hawaii, with
its own master. After a while his
master was kidnapped by
Kanikaa, a spirit, so the dog
went and lived with another
master. It was the usual thing for
the new master to go out fishing,
so he took the dog with him,
making it sit behind him in the
canoe. Every time a fish was
caught the dog would eat it up,
and as the dog kept on doing
this for some time, the master
said: “Yes, I have no objections
to your eating the fish, if you can
only supply me with my favorite
drink, the awa, then it would be
all right for you to eat the fish.”
While the master was saying
Kaao no
Pupualenalena.
He ilio o Pupualenalena, o
Puako i Hawaii ka aina. Noho
iho la ua ilio nei me kona kahu
ponoi, a lilo aku kona kahu ponoi
ia Kanikaa, he ’kua ia, noho iho
la ia me kona kahu hanai. He
mea mau i ke kahu ka holo e
lawaia, a o ua ilio nei mahope o
ke kahu; loaa no ka ia pau no i
ka ilio, pela aku no, a no ia pau o
ka ia i ka ilio, olelo iho la ke
kahu: “U, ua pono no hoi kau ai
ana i ka ia, i na hoi e loaa ana
ka’u puni ia oe o ka awa, alaila,
pono no hoi kau ai ana i ka ia.”
Ma keia olelo a ke kahu, ua lohe
this, the dog Pupualenalena
understood him. In the evening
the dog disappeared. This
absence was because it went to
steal awa down in the valley of
Waipio. At this time Hakau the
king was living at Waipio. He
owned a large field of awa, just
at the foot of the Puaahuku cliff.
This was the field where
Pupualenalena came and got
awa. At daybreak he would
reach home with his awa, when
his master would take it, cut it up
and prepare some and drink it.
The master after this had all the
awa he wanted and the dog kept
him supplied for many days. The
dog, however, went to the place
so often that after a while very
little of the field was left; so
Hakau began to be suspicious
and therefore set guards over
the field. While the guards were
watching one night, the dog
came to the field and began
pulling up the awa; when he had
a sufficient amount for a load it
took up the load and returned
home. The guards then were
sure that a dog was pulling the
king’s awa, so they followed it.
The dog being much faster than
ua ilio nei o Pupualenalena. I ka
wa ahiahi, nalowale ua ilio nei o
Pupualenalena. O keia nalo ana,
ua hele i ka aihue awa i lalo o
Waipio. O Hakau ke ’lii e noho
ana i Waipio ia wa, nana ua
mala awa nei i ka pali o
Puaahuku olalo iho. I laila ka
awa a Pupualenalena i kii ai e
uhuki, a kokoke e ao, halulu ana
ua ilio nei me ka awa, lalau aku
la ke kahu a mama iho la i ka
awa, a inu iho la. Inu mau aku la
ke kahu i ka awa, a nui na la i
hala, kii mau no hoi ka ilio i ka
awa a kokoke e pau ka mala
awa a Hakau, hoohuoi o Hakau i
ka pau o ka awa, a hoonoho aku
la i mau kanaka kiai. Ia lakou e
kiai ana, hiki ana ua ilio nei, a
kokoke i ka mala awa, huhuki
ana i ka awa, ia wa, maopopo ia
lakou he ilio ka mea nana e
huhuki nei ka awa a ke ’lii. A ahu
ka awa a ua ilio nei, hoi aku la,
hahai aku la lakou mahope o ua
ilio nei.
Ua oi aku ka mama o ka ilio i
mua o ka poe nana e hahai ana,
nolaila, haalele kekahi poe
kanaka i ka hahai ana i ua ilio
nei a hoi aku la. Hookahi kanaka
the guards it got away; but one
fellow who was a good runner
kept up the chase until
Pupualenalena was finally
tracked to Puako. When the
guard saw the dog’s master he
was covered with scales from
the constant use of awa. The
guard then approached him and
asked: “Say, is this your dog?”
The master replied: “Yes.” The
guard then said: “You two have
sinned [560]against the king,
Hakau. Your dog has been
stealing the awa which belongs
to the king.” The guard then took
the man and his dog and brought
them to Hakau in the valley of
Waipio. When they arrived in the
presence of Hakau, Hakau
asked: “Is this your dog?” “Yes, it
is mine,” answered the man.
Hakau asked: “Have you been
drinking my awa then?” “Yes, I
have been drinking it. I thought
that the awa came from some
place nearer home. But I am
mistaken, and that he has been
getting it from Waipio, here.”
Hakau replied: “Yes, I am going
to kill both of you for taking my
awa.”
i hahai loa ia Pupualenalena a
hiki i kai o Puako. Nana aku la ia
i ke kahu o ua ilio nei, ua hele a
mahuna i ka awa, ninau aku la:
“Ea, nau no keia ilio?” Ae mai la
kela: “Ae.” I aku ua kanaka nei:
“Ua hewa olua i ke ’lii ia Hakau,
oia ka awa a ko ilio e kii nei,
[561]o ka awa a ke ’lii.” Lalau aku
la ua kanaka nei i ka ilio a me ke
kahu, a lawe aku la i mua o
Hakau malalo o Waipio.
A hiki laua nei i mua o Hakau,
ninau mai o Hakau: “Nau no keia
ilio?” “Ae, na’u no,” pela ke kahu.
Wahi a Hakau: “A nau no e inu
nei kuu awa?” “Ae, na’u no, e
kuhi ana au eia ma kahi kokoke
keia awa, aole ka: Eia ka i
Waipio nei.” I aku o Hakau: “Ae,
e make ana olua ia’u no ka pau
ana o kuu awa ia olua.”
During this time, in the reign of
Hakau, there was a large shell
used as a trumpet, called Kuana,
that was owned by the spirits
which lived above Waipio. This
shell was blown every night and
the sound from it made Hakau
angry. So he said to the master
of Pupualenalena: “I will,
however, save you and your dog
if you will get me the shell owned
by the spirits.” While Hakau was
speaking, Pupualenalena heard
and understood the king’s wish.
That night the shell was again
blown by the spirits. At midnight
the king of the spirits retired
leaving the guards to keep
watch; but later on they also fell
asleep. Pupualenalena then
stole in and jumped over the
sleeping guards. Seeing the
shell hanging over the king, it
jumped over him, took the shell,
stuck his head in through the
loop of the string by which it was
hung up and ran off with it. While
in its flight and just as he was out
of the house one side of the shell
struck a rock and a piece of the
shell was broken off. Upon
hearing the crack of the shell the
spirits woke up and gave chase,
Aia iloko o ia wa e noho alii ana
o Hakau, he pu na ke ’kua, o
Kuana ka inoa o ia pu, iluna aku
o Waipio, e kani mau ana ua pu
nei i na po a pau loa, nolaila,
uluhua o Hakau. Nolaila, olelo
aku o Hakau i ke kahu o
Pupualenalena: “Aia ke ola o
olua me ko ilio a loaa ka pu a ke
’kua.” Ia Hakau e olelo nei, ke
lohe nei o Pupualenalena. A
ahiahi, kani ka pu a ke ’kua; a
aumoe, moe ke ’lii o ke ’kua, ala
na kiai, a mahope pauhia i ka
hiamoe. Komo ana o
Pupualenalena iloko, ae aku la
maluna o na kiai, nana aku la e
kau ana ua pu nei maluna o ke
’lii wahi, ae aku la no keia
maluna o ke ’lii a loaa ka pu,
komo aku la ke poo o ua ilio nei
maloko o ke kaula kakai o ka pu,
e paa ai, a holo mai la.
Ma keia holo ana, ua puka i
waho o ka hale, pa kekahi aoao
o ka pu i ka pohaku, niho mole,
ala ke ’kua a alualu ia ia nei,
aole i loaa mai. Hiki keia i mua o
Hakau me ka pu, olioli o Hakau i
ka loaa ana o ka pu, nolaila,
hoonoho o Hakau i ke kahu a
but they were unable to catch me ka ilio i ka aina, a lilo ae la i
the dog. punahele na Hakau. [560]

When the dog arrived in the

presence of Hakau with the
shell, he was so happy that he
thereupon placed the master and
his dog on a piece of land near
by, and they became great
favorites with Hakau. [559]
[Contents]
Legend of
Kaulanapokii.
Kaumalumalu was the father and
Lanihau was the mother who
once lived in Holualoa, Kona,
Hawaii, residing there as king
and queen at that time. Mumu
was their first-born, then came
Wawa, then Ahewahewa, then
Lulukaina and then Kalino
making five sons. Then came
Mailelaulii, Mailekaluhea,
Mailepakaha, Mailehaiwale and
last came Kaulanapokii making
five daughters. After the children
were grown up, Mailelaulii asked
her younger sisters, saying: “Let
us go sight seeing 1 hereabouts.”
They then started out and went
as far as Huehue from which
point Kohala can be seen. On
beholding the white sands of
Kiholo and Kapalaoa they were
Kaao no Kaulanapokii.
O Holualoa i Kona, Hawaii, ka
aina. O Kaumalumalu ka
makuakane, o Lanihau ka
makuahine, he mau alii laua no
Kona ia wa. O Mumu ka mua, o
Wawa, o Ahewahewa, o
Lulukaina, o Kalino, alima kane.
O Mailelaulii, o Mailekaluhea, o
Mailepakaha, o Mailehaiwale, o
Kaulanapokii, alima wahine.
Noho iho la lakou a pau i ke nui,
olelo aku o Mailelaulii i kona
mau kaikaina: “E hele kakou e
makaikai maanei aku nei.” Hele
mai la lakou a hiki i Huehue e
nana ala ia Kohala, nana mai la,
a makemake mai la i ke aiai o ke
one o Kiholo a me Kapalaoa, a
hiki lakou i laila, malaila mai a
hiki i Kalahuipuaa, e noho ana o
Puako.
enticed to go on. When they
arrived at Kapalaoa they thought
they would keep on to
Kalahuipuaa. Upon arriving at
Kalahuipuaa they met Puako.
Puako was a very handsome
man whose form was perfect.
When he saw Mailelaulii he took
her to be his wife and that night
they were covered with the same
kapa. Very early the next
morning the girls looked and saw
Puako carrying sea water and
filling pools for salt making. Upon
seeing this the sisters got
disgusted and said to Mailelaulii:
“Say, if that is going to be your
husband we will all be made
weary carrying [562]sea water for
salt making and our skins will
look like the windward bark of a
noni tree.” Mailelaulii then said to
Puako: “My sisters are urging me
to continue on our way sight
seeing.” Puako consented to
this, so the girls departed on
their way to Kohala. When they
arrived at Kokoiki, in Kohala,
they met Hikapoloa, the chief of
Puuepa and Hukiaa; as he was a
single man he took Mailelaulii to
He kanaka maikai o Puako, he
ui, aohe puu, aohe kee, lawe ae
la ia ia Mailelaulii i wahine, a
moe iho la lakou ia po a ao ae
la. Nana aku la lakou ia Puako, e
hele ana i kuapa i ka halihali kai
loko o na poho paakai, a
hoowahawaha iho la ia Puako.
Olelo aku na kaikaina, ia
Mailelaulii: “Ea, ina o kau kane
kela, luhi kakou i ka hoohaha
paakai, i ka lawe i ke kai, hele
wale iho no ke kino a kuanoni.”
[563]
Olelo aku la o Mailelaulii ia
Puako: “E hele ana makou e
makaikai, ke koi nei lakou nei
ia’u e hele makou.” Ae mai la o
Puako, nolaila, hele lakou nei
ma Kohala nei. A hiki lakou i
Kohala a noho ma Kokoiki, e
noho ana o Hikapoloa he ’lii no
Puuepa a me Hukiaa, aohe
wahine ana, nolaila, lawe ae la o
Hikapoloa ia Mailelaulii i wahine,
a noho iho la lakou ia Kohala.
be his wife: so the sisters took
up their residence in Kohala.
Shortly after this some of the
Kohala people sailed for Kekaha
and from there continued on to
Holualoa, Kona, for the purpose
of trade, where they met Mumu
and his brothers. Mumu and his
brothers were fishermen and
caught aku and all other kinds of
fish. They had in their
possession some very rare pearl
fish-hooks, which supplied them
with all the aku they wanted. The
Kohala traders got their fish from
Mumu and his brothers.
On returning to Kohala the
traders upon arriving at Puuepa
took some of the fish to
Hikapoloa, his wife and sisters.
When the fish was given to them
the sisters asked: “Where did
you get your fish from?” “From
Holualoa.” “From whom at
Holualoa?” “From Mumu and his
brothers.” The sisters then said
to Hikapoloa: “They are our
brothers. There are five of them
and all fishermen.” Hikapoloa
then asked: “Do you think I will
be able to get a pearl fish-hook if
A liuliu iho, holo kekahi poe o
Kohala i ke kalepa ia i ke kaha, a
hala loa i Kona a Holualoa, kahi
o Mumu ma. O ka Mumu ma
hana me na kaikaina o ka
lawaia, o ke aku ka ia a me na ia
e ae, a na lakou ua pa ai nei i ke
aku. No laila ka ia a ka poe
kalepa o Kohala i holo aku ai.
Hoi mai la lakou a Puuepa, lawe
mai la i kekahi mau ia na
Hikapoloa a me na wahine.
Ninau aku la lakou: “Nohea ka
oukou ia?” “No Holualoa.” “Na
wai la o Holualoa?” “Na Mumu
ma.” I aku lakou ia Hikapoloa: “O
ko makou mau kaikunane ia,
elima ko lakou nui, he poe
lawaia wale no.” Olelo mai o
Hikapoloa: “Pehea, loaa no ia’u
ka pa ke kii?” “Ae, aole e aua ia
oe, ke olelo aku oe he kaikoeke
oe no lakou, a ke hai aku oe o
Mailelaulii kau wahine.”
I should go for one?” “Yes, they
will not refuse you one if you tell
them that you are their brother-
in-law and if you tell them that
Mailelaulii is your wife.”
Soon after this Hikapoloa set sail
for Kona and landed at Holualoa.
Upon his arrival his brothers-in-
law were out fishing so he
awaited for their return. Upon
being told that he was their
brother-in-law, they asked him:
“What is the object of your visit?”
“I have come for a pearl fish-
hook for aku fishing. That is the
only thing that has brought me
here, nothing else.” “Yes, you
shall have a pearl fish-hook.
Here it is, with the rod and line.”
When Hikapoloa came home his
canoes were loaded down with
dry aku as well as with fresh aku.
After Hikapoloa had been home
for some time he gave orders
that the canoes be made ready
to go out fishing for aku. When
the canoes were ready they
started out and upon coming to
the aku grounds he took up the
fish-hook and held it in his hand,
thinking that the aku would jump
Holo aku la o Hikapoloa a pae
ma Holualoa, i ka lawaia na
kaikoeke a hoi mai la, e noho
ana keia i ka hale. Hai aku la o
Hikapoloa i na kaikoeke, e like
me ka olelo a na kaikuahine.
Ninau mai la na kaikoeke:
“Heaha kau huakai?” “He pa hi
aku, o ia ko’u mea i hiki mai nei,
aohe mea e ae.” “Ae, he pa, eia
no me ka makoi a me ke aho.”
Hooili mai la lakou i ke aku a na
waa o Hikapoloa, a me ke aku
maloo.
Hai mai la o Hikapoloa a hiki i
Kohala, noho iho la a liuliu,
hoolale aku la i na waa a me na
kaohi. Holo aku la lakou i ka hi
aku, a kahi o ke aku, lalau iho la
o Hikapoloa, i ka pa a paa ae la i
ka lima, e manao ana ia e lele
mai ke aku mai ke kai mai a
komo i ka waa. Pela ka hana
into the canoe of their own
accord. He held the hook this
way all day until the paddlers
were stiff with cold, but no aku
was caught. Upon failing to get
any aku he took it as sufficient
cause for the death of his
brothers-in-law. When they
arrived home, Hikapoloa did not
tell his wife of his plans to kill his
brothers-in-law; but he told the
watchman 2 at Kukuipahu, the
place where the canoes from
Kona generally make their
landing, saying: “In case my
brothers-in-law from Kona
should arrive, don’t give them
any food; tell them they can get
their food up at Hikapoloa’s
place.” Hikapoloa then prepared
firewood and the umu, 3 and then
selected a guard for the door
who was already armed with a
stone axe and instructed him
that when any head should enter
the door to cut it off.
Not very long after this a
prolonged drought visited Kona
and food became very scarce.
After a while there was no food
to be had in the district; Kohala
was the only [564]place that had
ana a po ka la, pau na hoewaa i
ka opili, aohe loaa o ke aku;
nolaila, lilo keia loaa ole o ke aku
i hala e make ai na kaikoeke.
Pae aku la lakou a uka, noho iho
la me ka olelo ole i na wahine,
ua holo ia lakou e make na
kaikoeke.
Olelo aku la o Hikapoloa i ke kiai
o Kukuipahu, oia ke awa e pae
ai ko Kona waa ke holo mai: “E! I
hiki mai o’u kaikoeke mai Kona
mai, mai hanai oe i ka ai, olelo
aku oe aia i uka ka ai ia
Hikapoloa.” Hoomakaukau iho la
o Hikapoloa, i ka wahie a me ka
umu, a hoonoho iho la i kiai no
ka puka o ka hale, me kona
makaukau i ke koi, ina e komo
ke poo maloko o ka hale, alaila
ooki i ke koi.
A hiki i ka wa wi o Kona, aohe ai,
a hookahi aina ai o Kohala, olelo
aku o Kalino i na kaikuaana: “E
holo kakou i Kohala i ai na
kakou.” Ae na kaikuaana, holo
mai [565]la lakou me ka hi aku a
food, so Kalino said to his older
brothers: “Let us sail to Kohala
and get us some food.” The
brothers consented to this; so
they made ready and while on
their way they fished for aku.
When they arrived at Kukuipahu,
in Kohala, their canoe was
loaded down deep with aku. As
they came ashore they were all
faint with hunger from want of
food; so they went to the house
of the watchman expecting to
obtain some food. When they
arrived at the house the
watchman said: “Your brother-in-
law has left word that you go
right on up as he has the food for
you.” The younger brothers then
said to Mumu: “You go on up and
when you get there bring us
some food. After we have some
food we will also go up. Don’t be
long.” Mumu then took up an aku
and started on his way to Puuiki,
a hill looking down on Kukuipahu
and from which point the houses
of Hikapoloa could be seen. As
he reached the top of the hill, the
watchman called out to
Hikapoloa: “Say, I see a man, he
comes running with a fish in his
hand.” Hikapoloa looked and
komo na waa hiki i Kukuipahu
ma Kohala. A pae lakou i
Kukuipahu, ua pololi, ua hele a
maka poniuniu i ka make a ka ai,
hoona aku la lakou nei a ka hale
o ke kiai, olelo mai ke kiai: “E! I
olelo mai ke kaikoeke o oukou e
pii oukou ke pae mai, aia no ka
ai iaia.” I aku na kaikaina ia
Mumu: “E pii oe, a hiki, lawe mai
oe i wahi ai na makou, a maona
ia pii aku, mai lohi oe.” Hopu iho
la o Mumu he aku, pii aku la a
hiki i Puuiki, he ahua puu ia e
nana ana ia kai o Kukuipahu, a e
nana ana i na hale o Hikapoloa.
Hai aku ke kiai ia Hikapoloa. “E,
he kanaka hoi keia eia la, ke
holo mai nei he ia ko ka lima.”
Nana aku la o Hikapoloa a ike,
olelo aku la: “O Mumu, o ke
kaikunane o Mailelaulii ma.”
A hiki mai la o Mumu i waho o ka
pa o ka hale, ninau mai la i ke
kiai: “Auhea na ’lii wahine?” I aku
ke kiai: “Mahope ia, e komo e ai
a maona, alaila i ka makamaka.”
Ma keia olelo a ke kiai, komo
aku la o Mumu i loko o ka pa o
ka hale, a hiki i ka hale, kahea
mai ke kiai o loko: “Komo mai.”
Komo aku la o Mumu, o ke poo
saw it was Mumu, so he said: “It kai komo, ooki iho la keia
is the brother of Mailelaulii.” kanaka i ke koi, lele ke poo mai
When Mumu arrived outside of ke kino aku, a kahi e waiho.
the enclosure surrounding the Ninau mai ke poo o Mumu:
house, he asked of the
watchman: “Where are the
chiefesses?” The watchman
said: “That is afterwards; enter
the house and have some food
first, then you may see your
relations.” On thus being invited,
Mumu entered the enclosure and
went up to the house. The inner
guard then called out: “Come in.”
At this Mumu entered, head first,
when down came the axe and
the head was cut off from the
body. The head rolled off to
some distance and then asked:

Inquire and ask E ui aku, e ninau,

For the fault why the man was I ka hala i make ai ke kanaka;
killed; Heaha ka hala o kanaka i make
What is the fault that a man ai?
should be killed?

Hikapoloa answered: “There is a I aku o Hikapoloa: “He hala. O

fault. The pearl fish-hook that
was worthless was given to me
and the pearl fish-hook that the
aku is fond of was kept back.
That is the fault.” The head of
ka pa ai ole, haawi ia mai, o ka
pa ai, aua ia aku. Oia ka hala.”
Pane hou mai ke poo o Mumu ia
Hikapoloa:
Mumu again inquired of
Hikapoloa:
Is that all the fault, why a man
should be killed?
The umu by this time was hot
and ready; the body was then
put into the umu. After it was
cooked Hikapoloa said: “The
person who will eat the biggest
amount 4 shall be presented with
the largest ahupuaa.” After the
body was eaten the bones were
thrown onto a pile of sugar-cane
trash. The younger brothers in
the meantime awaited for the
return of their brother. After
some time had lapsed
Ahewahewa went up and he also
was killed. The next one followed
and so on down to Kalino. When
it came to Kalino’s turn, he took
up an aku and started off. When
he got to Puuiki, he was seen,
and the watchman called out to
Hikapoloa: “Say, there is a thin
man coming up.” Hikapoloa
answered: “It must be Kalino; he
must be coming up sideways for
he is a large man. He is the last
one, the youngest of the
brothers.” When Kalino arrived
O ka hala wale iho la no ia, e
make ai kanaka?
Ua makaukau ka umu, ua
enaena; ia wa, kalua ia ke kino o
Mumu i ka umu, a moa, olelo o
Hikapoloa: “O ka mea ikaika i ka
ai ana, e lilo ke ahupuaa nui iaia.
A pau ka ai ana, kiola ia aku la
na iwi i ka puainako. Kakali mai
la na kaikaina o ka hoi aku, a
liuliu, pii o Ahewahewa, pela no
ka hana a hiki ia Kalino. Lalau
iho la o Kalino i ke aku, pii mai la
a hiki i Puuiki, hai aku la ke kiai
ia Hikapoloa: “E, he kanaka wiwi
ae hoi keia e pii mai nei.” I aku o
Hikapoloa: “O Kalino keia
kanaka, ua kunihi mai la ka pii
ana; he kanaka nui keia, o ka
pau keia o na kane. O ka muli
loa keia o Mumu ma.” A hiki o
Kalino, me ke aku i ka lima,
ninau aku la i na kiai: “Auhea na
’lii wahine?” “Mahope ia, e komo
e ai a maona, alaila hele aku e
ike.” Komo aku la o Kalino, ooki
iho la ke koi, moku ke poo. Olelo
mai ke poo o Kalino: