Explain how the following test of control will affect the sample size? a. An increase in the extent to which the auditor's risk assessment takes into account relevant controls b. An increase in the tolerable rate of deviation c. An increase in the expected rate of deviation of the population to be tested

Q: It is important to recognize that audit sampling may be constructed on a nonstatistical basis. If…

A: a) The extent to which statistical sampling enhances the quality of the audit evidence - The use of…

Q: (Appendix G.B) To determine the sample size for a classical variables sampling application,an audit…

A:

Q: Obtain an understanding of the client’s external controls. All things equal, as the risk of…

A: The question is multiple choice question  Required  Choose the Correct Option.

Q: When the computed upper exception rate is greater than the tolerable exception rate, it is necessary…

A: When the CUER (i.e. computed upper exception rate) is greater than the TER (i.e. tolerable exception…

Q: 9-13

A: When auditor considers that there would be an increase in the amount of mis-statement in the…

Q: The type of sampling most frequently used by auditors during their study of internal control is…

A:

Q: What responses should an auditor take based on different levels of acceptable detection risk (DR)?…

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Q: Which of the following steps involved with determining the upper limit on misstatements is…

A: Determine the audited value of the item and compare it to the recorded balance is step involved with…

Q: What is the purpose of sampling in auditing? Why is it relevant in performing test of controls and…

A: Audit sampling is an investigative technique in which a sample of fewer than 100% of the total items…

Q: The risk that the decision made based on the sample will differ from the decision madebased on the…

A:

Q: Using AICPA sample evaluation tables, determine the conclusion from a statistical sampleof internal…

A: Introduction: Sampling risk: Sampling risk refers to the possibility of non-representation of the…

Q: High levels of assurance mean _______.     A. lower levels of non-sampling risk that the sample is…

A: High Level of Assurance: The greater the degree of assurance offered, the greater the amount of…

Q: Which of the following is an advantage of nonstatistical sampling?a. It measures the audit team’s…

A: Non-statistical sampling: It refers to the method of sampling where the selection of the sample is…

Q: What are the risks if the auditor concludes controls are operating effectively based on the sample…

A: Definition:   Sampling risk: Sampling risk is a risk that arises when the judgments based on the…

Q: In determining the sample size for a test of controls, an auditor should consider the expected…

A: Audit is the process of checking and verifying the books of account of the business in order to…

Q: When đõés thé áuditor use simple random sampling? For populations where each item is considered to…

A: Ans:  For Population where each item is considered to have the same characteristics for audit…

Q: Which of the following is the exception rate that the auditor expects to find before testing?…

A: The expected population exception rate represents the exception rate that has been predicted in…

Q: The more assurance the auditor wants, _______.     A. the less representative a sample should be…

A: Auditing means the independent checking of company operation by outsider. Auditor is a qualified and…

Q: Describe to what extent statistical sampling enhances the quality of the audit evidence.

A: Audit evidence is the evidence collected by an auditor during an audit which will form part of his…

Q: Which of the following is not an advantage of non-statistical sampling? a) It allows an auditor to…

A: It requires less staff training is not a advantage of non statistical sampling.... In this sampling…

Q: Which of the following is not a method that auditors use to control their exposure to sampling risk…

A: Sampling:   Sampling allows an individual to obtain the information about the population of…

Q: Which of the following components of the audit risk model is most closely associated with attributes…

A: Given: The association of sampling attributes with the components of the audit risk model.

Q: sampling plans focus on a. Rates of deviation from prescribed control procedures. b. Assessing the…

A: variable sampling is the process that is used in order to predict the value of specific variable…

Q: The risks of incorrect acceptance in variables sampling and of overreliance in attributessampling…

A: Attributes sampling is a technique used to control the extent of particular attributes that exist…

Q: Explain how judgement is used in statistical and non-statistical sampling in an audit service

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Q: If the _______ exceeds the _______, the audit team would decide to rely on internal control as…

A: Audit is a procedure of cross checking the financial statements of a firm for a financial year…

Q: Which of the following statements is not true with respect to nonstatistical sampling?a. It cannot…

A: Sampling allows an individual to obtain the information about the population of interest in the…

Q: STATEMENT 1: Nonstatistical sampling approach is determined based on pure judgment of the auditor.…

A: Audit refers to the physical examination or investigation of the book of accounts of the company and…

Q: When evaluating the results of an MUS application, the audit team should compare the upper limit on…

A: Answer:   Option d

Q: What is “tolerable misstatement”? How is this concept applied when auditors perform audit tests on a…

A: Tolerate misstatement is a term used in auditing that refers to the amount by which a financial…

Q: Which of the following components is not used in determining the upper limit on misstatements?a.…

A: Auditors generally uses Sampling Tools to find any error.

Q: Which of the following major stages of the audit is most closely related to attributes sampling?a.…

A: Audit sampling is selection of items from a population of items for identifying and assessing the…

Q: What is stratification? What are the benefits to the audit team of stratifying the sample?

A: Stratification is the process of dividing a population into subpopulations, each of which is a group…