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Auditing and Assurance Services (16th Edition)
16th Edition
ISBN: 9780134065823
Author: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
Publisher: PEARSON
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Question
Chapter 15, Problem 27DQP
a.
To determine
Develop a sampling plan that includes defining the sampling unit, establishing the numbering system for the population, and explain the manner of using the Excel RANDBETWEEN function for selecting the sample for each case.
b.
To determine
Identify the first five numbers using the systematic selection method.
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Students have asked these similar questions
In auditing, can anyone who uses sampling be absolutely sure that the sample is representative of the population from which it is drawn?
Please provide references if any.
In non-statistical sampling, _______.
the auditor determines samples size, sample selection methods, and evaluates the sample results on the basis of the professional judgment and the auditor’s own experience.
the auditor determines samples size, sample selection methods, and evaluates the sample results entirely on the basis of predetermined statistical parameters.
the auditor uses the internal audit function to gather samples
the auditor selects a sample of certain balance sheet accounts and exclusively audits them
If an auditor wishes to draw attention to important information that is already presented or disclosed in the financial statements, the auditor would include a _______.
qualified opinion
disclaimer of opinion
emphasis-of-matter paragraph
scope limitation paragraph
_______ are used near the end of the audit to assist the auditor in forming an overall conclusion about whether the financial statements…
Discuss the main steps to consider when conducting auditing sampling.
Chapter 15 Solutions
Auditing and Assurance Services (16th Edition)
Ch. 15 - Prob. 1RQCh. 15 - Prob. 2RQCh. 15 - Prob. 3RQCh. 15 - Prob. 4RQCh. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Prob. 8RQCh. 15 - Prob. 9RQCh. 15 - Prob. 10RQ
Ch. 15 - Prob. 11RQCh. 15 - Prob. 12RQCh. 15 - Prob. 13RQCh. 15 - Distinguish between the TER and the CUER. How is...Ch. 15 - Prob. 15RQCh. 15 - Prob. 16RQCh. 15 - Prob. 17RQCh. 15 - Prob. 18RQCh. 15 - Prob. 19RQCh. 15 - Prob. 20RQCh. 15 - Prob. 21RQCh. 15 - Prob. 22.1MCQCh. 15 - Prob. 22.2MCQCh. 15 - Prob. 22.3MCQCh. 15 - Prob. 23.1MCQCh. 15 - Prob. 23.2MCQCh. 15 - Prob. 23.3MCQCh. 15 - Prob. 24.1MCQCh. 15 - Prob. 24.2MCQCh. 15 - Prob. 24.3MCQCh. 15 - Prob. 25.1MCQCh. 15 - Prob. 25.2MCQCh. 15 - Prob. 25.3MCQCh. 15 - Prob. 27DQPCh. 15 - Lenter Supply Company is a medium-sized...Ch. 15 - Prob. 29DQPCh. 15 - Prob. 30DQPCh. 15 - Prob. 31DQPCh. 15 - Prob. 32DQPCh. 15 - Prob. 33DQPCh. 15 - Prob. 34DQPCh. 15 - Prob. 35DQPCh. 15 - Prob. 36CCh. 15 - Prob. 37ICA
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Similar questions
- Select the necessary words from the list of possibilities to complete the following statements. 1. 2. 7. Inherent in the use of sampling is representative of the population. 9. When the auditors estimate sampling risk using professional judgment rather than by using the laws of probability, they are said to be using. sampling. an item from the population may be selected two or more times for inclusion in the When using sample. The term 3. 4. 5. In performing tests of controls, the auditors are primarily concerned with the risk of assessing 6. To use attributes sampling tables, the auditors must stipulate the desired risk of assessing control risk too low, the expected deviation rate in the population, and the desired Statements risk which is the possibility of selecting a sample that i not refers to the process of dividing a population into relatively homogeneous subgroups. sampling is usually used in situations in which the auditors expect a very low rate of occurrence of some…arrow_forwardGeneral Attributes Sampling. You overheard the following dialogue between Joe Ashley(a staff assistant) and Monique Estrada (his supervisor).Required:Referring to appropriate professional standards, comment on each of these statements.a. “It’s unfortunate that generally accepted auditing standards don’t allow us to use nonstatistical sampling for this control. I just don’t feel that the extra time and effort to usestatistical sampling are worth the benefits.”b. “I’m not sure what level of control risk we should plan to use. We need to determinethe amount of substantive procedures that we will conduct and then assess control riskaccordingly.”c. “We really need to be careful to limit our exposure to the risk of overreliance. This riskcould result in our failure to perform enough substantive procedures.”d. “Separation of duties is such an important control that we should use statistical samplingto evaluate the extent to which the custody, recording, and approval functions for purchases…arrow_forwardIn auditing, can anyone who uses sampling such as statistical and non-statistical sampling be absolutely sure that the sample is representative of the population from which it is drawn? Please provide references if any.arrow_forward
- An auditor typically selects samples when testing controls. What are some factors that affect the sample sizes used when testing controls?arrow_forwardSample Size Determination. Review each of the following independent sets of conditions.Required:Use AICPA sample size tables to identify the appropriate sample size for use in a statistical sampling application (ROO = risk of overreliance, EPDR = expected population deviation rate, TRD = tolerable rate of deviation). What is your conclusion regarding the relationship of each of these factors to sample size based on comparing the sample sizes across differentcombinations of these factors?a. ROO = 5%, EPDR = 0%, TRD = 7%.b. ROO = 5%, EPDR = 3%, TRD = 7%.c. ROO = 5%, EPDR = 3%, TRD = 6%.d. ROO = 10%, EPDR = 0%, TRD = 7%.arrow_forwardWhich of the following steps involved with determining the upper limit on misstatements is ordinarily performed earliest?a. Multiply the sampling interval by the tainting percentage.b. Determine the audited value of the item and compare it to the recorded balance.c. Calculate the basic allowance for sampling risk.d. Calculate the incremental allowance for sampling risk.arrow_forward
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