In determining the sample size for a test of controls, an auditor should consider the expected deviation rate, desired confidence level, and the * O Nature and cause of deviations O Population size O Risk of incorrect acceptance Tolerable deviation rate

Q: tement (M)?   a. M is based on the sample results.   b.   the larger M is, the lower the…

A: Tolerable Error Rate (TER) is the maximum acceptable rate of error sample results. TER = EPER + An…

Q: Which one of the sentences below is FALSE? A. The risk of incorrect acceptance called beta risk has…

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

Q: Sample Size Determination. Review each of the following independent sets of conditions.Required:Use…

A:

Q: Explain how the following test of control will affect the sample size? a. An increase in the extent…

A: a. An increase in the extent to which the auditor's risk assessment takes into account relevant…

Q: ow to select appropriate audit samplin

A: Answer: Audit sampling is the process of auditing of any financials on sample basis. There are…

Q: Audit sampling involves applying an audit procedure to less than 100 percent of the population for…

A: Sampling Risk :- Sampling threat is the opportunity that the objects decided on in a pattern…

Q: 9-13

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

Q: Auditors must be aware of sampling risks because: A The risk of type 2 error due to increased…

A: The Type 2 error is failing to detect a material misstatement in the financial statements. Type 1…

Q: An auditor who uses statistical sampling for attributes in testing internal controlsshould reduce…

A: Sampling: Sampling can be defined as the process under which small number of observations is taken…

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: Which of the following factors used to determine sample size is normally based on the extentto which…

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

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: The sample size of a test of controls varies inversely with:…

A: Audit sampling is a process of applying audit procedures for less than 100% of the various items of…

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: aterial misstatement exists when it does not exist     the risk that an auditor incorrectly…

A: Risk of incorrect rejection is defined as   the risk that the auditor concludes that a…

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: When variables sampling is used in the audit examination?

A:

Q: d consider whendetermining the size of a sample. (d) Describe to what extent statistical sampling…

A: Auditing: It is the examination of books of accounts of the company with the view to represent a…

Q: An advantage of statistical sampling over nonstatistical sampling methods is that statistical…

A:

Q: Sample Size Determination. Review each of the following independent sets of conditions.Required:Use…

A: Sample Size: The sample size is the portion of the total population that represents the total…

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: Which of the following would not result in the audit team’s selecting a larger sample of controlsfor…

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

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

A:

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 about attribute sampling is correct?   A. Larger transactions…

A: An audit can be defined as the independent examination of the financial statements by the auditor.…

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: Non-statistical sampling is commonly used in audit practice. Describe each of the four items…

A: Audit sampling is a method of investigation in which a sample of less than 100% of the total items…

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

A: Answer:   Option d

Q: In using audit sampling for exception rates:     the auditor wants to know the most the exception…

A: The auditor is the person who conduct audit of the financial statements and who is responsible of…

Q: In evaluating the results of audit sampling in test of details which sentence below is FALSE? A.…

A: Auditing means to check whether the results are as per assumptions or calculations made at the…