Which of the following factors used to determine sample size is normally based on the extentto which the audit team expects to rely on the internal control being examined?a. Allowance for sampling risk.b. Expected population deviation rate.c. Sample rate of deviation.d. Tolerable rate of deviation

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: 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: 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: 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: 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: When the auditor has assessed control risk of a particular area at a reduced level, he or she will…

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

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: For both tests of controls and substantive tests of details, non-sampling risk can be reduced by…

A: Solution Concept Sampling risk               Sampling refers to the examination of the sample from…

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

A: The sample deviation rate represents the rate of deviation from key controls written down by the…

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

A:

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

A:

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: 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: 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: 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: 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…