What is the sample rate of deviation? How does the audit team calculate it?

Q: Identify the two situations in which samplingis used in an audit.

A: Audit Sampling: Audit sampling refers as an audit technique where audit procedures are applied to a…

Q: Define variables sampling and understandwhen it is used in the audit.

A: Variable sampling is a sampling process used by auditors to enumerate the value of a specific…

Q: What information does the audit team typically document in an attributes sampling application?

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

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: ow to select appropriate audit samplin

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

Q: What is the tolerable rate of deviation? How does the audit team use it when deciding whether torely…

A: Tolerable rate of deviation: Tolerable rate of deviation is the maximum rate of deviation is used by…

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: What is the connection between audit sampling and audit data mining?

A: Audit sampling is the method in which audit procedure are performed on less than 100% data. In…

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

A:

Q: Is nonstatistical sampling permitted under generally accepted auditing standards?

A: Non- statistical sampling means selection of a group to be tested which is based on the examiner's…

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: 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: When variables sampling is used in the audit examination?

A:

Q: Tolerable error, is the maximum monetary error that the auditor is prepared to accept in the…

A: Materiality is an concept in audit where it plays an key role during the audit process in…

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: In audit sampling applications, sampling risk isa. A characteristic of statistical sampling…

A: Answer:   Option d

Q: What options are available to the audit team if the ULRD is greater than the tolerable rate of…

A:

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: 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: 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…

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…

Q: Which of the following statements is not true with respect to the calculation of the upperlimit on…

A: Here the reference is from ISA - 530 "Audit sampling"

Q: e misstatements found in the sample to the population when using statistical sampling, but not when…

A: In statistical analysis, sampling is  act of selecting a specific number of observations from larger…

Q: When using sampling in the study of internal control, the audit team would compare theupper limit…

A: Auditing refers to the examination of the financial information and data and evaluate the financial…