Chapter 9 Homework Questions

not use ai please don't

High levels of assurance mean _______.     A. lower levels of non-sampling risk that the sample is not representative of the population   B. higher levels of non-sampling risk that the sample is not representative of the population   C. lower levels of sampling risk that the sample is not representative of the population   D. higher levels of sampling risk that the sample is not representative of the population

.What is the effect on sample size for substantive procedures of an increase in the total error that the auditor is willing to accept     increase decrease negligible effect no effect

A number of factors influences the sample size for a substantive test of details of an account balance. All other factors being equal, which of the following would lead to a larger sample size? a. Smaller measure of tolerable misstatement. b. Greater reliance on internal control. c. Smaller expected frequency of errors. O d. Greater reliance on analytical procedures.

Tolerable error, is the maximum monetary error that the auditor is prepared to accept in the population and still conclude that audit objective has been achieved, is directly related to A.Sample size BAudit risk C.Materiality D.Expected error

STATEMENT 1: In an audit sampling application, detection risk arises from the uncertainties of nonsampling risk and sampling risk. STATEMENT 2: Non sampling risk can be reduced to an acceptably low level by a 100% examination of the account balance or transaction class. A. Only Statement 1 is incorrect B. Only Statement 1 is correct C. Both statements are incorrect D. Both statements are correct

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s1: The only way to know with certainty whether a sample Is representative is to subsequently audit the entire population. s2: One way to control sampling risk is to increase the sample size. s3: Sampling risk results from the auditor's failure to recognize exceptions in transaction data.  A. all statements are true b. all statements are false c. s1 and s2 are true d. s1 and s3 are true

s1: A stratified sample consist of sampling units selected without conscious bias. s2: All auditing procedures involve audit sampling. s3: A deviation from prescribed control procedures does not necessarily indicate the presence of monetary error  A. all statements are true b. all statements are false c. s1 and s2 are true d. s1 and s3 are true

Which one of the sentences below is FALSE? A. The risk of incorrect acceptance called beta risk has the consequence that the auditor may assume that the population is free of material misstatement. B. The risk of incorrect rejection is called alpha risk and has the consequence that the auditor may assume on the basis of sample results that a population is materially misstated when, in fact, it is not .  C. The risk of incorrect acceptance is called beta risk. D. The risk of incorrect rejection very common in audit sampling  is called beta risk.

STATEMENT 1: If the sampling unit is defined as the individual disbursement entry in the check register, the sampling frame would be the check voucher and its supporting documents. A STATEMENT 2: Not all audit tests applied to less than 100% of the populatian are considered audit sampling applications. A. Only Statement 1 is incorrect B. Only Statement 1 is correct C. Both statements are incorrect D. Both statements are correct

8 Audit Sampling is an investigative step or technique where less than 100% of the total items within the population of items are selected to be audited.   Question 8 options:   a) True   b) False

In evaluating the results of audit sampling in test of details which sentence below is FALSE? A. When the projected misstatement plus anomalous misstatement exceeds tolerable misstatement, the sample does not provide a reasonable basis for conclusions about the population that has been tested.  B. he auditor's best estimate of the misstatement of the population is the projected misstatement minus anomalous misstatement.  C. The closer the projected misstatement plus anomalous misstatement is to tolerable misstatement, the more likely that actual misstatement in the population may exceed tolerable misstatement. D. The auditor's best estimate of the misstatement of the population is the projected misstatement plus anomalous misstatement.

68 Which of the following factors is generally not considered in determining the sample size for a test of controls?  Group of answer choices  Expected population deviation rate  Population size  Tolerable rate  Risk of assessing control risk too low

STATEMENT 1: The choice between a statistical and a nonstatistical sampling plan is based primarily on the auditor's assessment of the relative costs and benefits. STATEMENT 2: The choice between a statistical and a nonstatistical sampling plan is made independent of the selection of audit procedures. A. Only Statement 1 is incorrect B. Only Statement 1 is correct C. Both statements are incorrect D. Both statements are correct