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Sampling-ISA-530-
Questions:
1.While performing a test of details during an audit, an auditor determined that the
sample results supported the conclusion that the recorded account balance was
materially misstated. It was, in fact, not materially misstated. This situation illustrates the
risk of
a.Assessing control risk too high.
b.Assessing control risk too low.
c.Incorrect rejection.
d.Incorrect acceptance.
2.An auditor may decide to increase the risk of incorrect rejection when
a.Increased reliability from the sample is desired.
b.Many differences (audit value minus recorded value) are expected.
c.Initial sample results do not support the planned level of control risk.
d.The cost and effort of selecting additional sample items are low.
3.Which of the following statements about audit sampling risks is correct?
a.Non sampling risk arises from the possibility that, when a substantive test is restricted to a
sample, conclusions might be different than if the auditor had tested each item in the population.
b.Nonsampling risk can arise because an auditor failed to recognize misstatements.
c.Sampling risk is derived from the uncertainty in applying audit procedures to specific risks.
d.Sampling risk includes the possibility of selecting audit procedures that are not appropriate to
achieve the specific objective.
4.An advantage that using statistical sampling has over nonstatistical sampling is that
statistical sampling helps an auditor to
a.Minimize the failure to detect errors and irregularities.
b.Eliminate the risk of non-sampling errors.
c.Reduce the level of audit risk and materiality to a relatively low amount.
d.Measure the sufficiency of the evidential matter obtained.
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Sampling-ISA-530-
5.Which of the following sample planning factors would influence the sample size for a
substantive test of details for a specific account?
Expected amount of
misstatements
Measure of tolerable misstatement
No
No
Yes
Yes
No
Yes
Yes
No
6.An advantage that using statistical sampling methods have over nonstatistical
sampling methods in tests of controls is that the statistical methods a.Can more
easily convert the sample into a dual-purpose test useful for substantive testing.
b.Eliminate the need to use judgment in determining appropriate sample sizes.
c.Afford greater assurance than a nonstatistical sample of equal size.
d.Provide an objective basis for quantitatively evaluating sample risk.
7.When performing a substantive test of a random sample of cash disbursements,
an auditor is supplied with a photocopy of vendor invoices supporting the
disbursements for one particular vendor, rather than the original invoices. The
auditor is told that the vendor's original invoices have been misplaced. What
should the auditor do in response to this situation?
a.Randomly increase the number of items in the substantive test to increase the reliance
that may be placed on the overall test.
b.Reevaluate the risk of fraud and design alternate tests for the related
transactions.
c.Increase testing by agreeing more of the payments to this particular vendor to the
photocopies of its invoices.
d.Count the missing original documents as misstatements and project the total amount of
the error based on the size of the population and the dollar amount of the errors.
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313425-Sampling-Introduction