1an advantage of statistical sampling over nonstatistical
Project Description:
(multiple choice)
1an advantage of statistical sampling over nonstatistical sampling is that statistical sampling helps an auditor to
a. eliminate the risk of nonsampling errors.
b. reduce audit risk and materiality to a relatively low level.
c. measure the sufficiency of the evidential matter obtained.
d. minimize the failure to detect errors and fraud.
2samples to test internal controls are intended to provide a basis for an auditor to conclude whether
a. the controls are operating effectively.
b. the financial statements are materially misstated.
c. the risk of incorrect acceptance is too high.
d. materiality for planning purposes is at a sufficiently low level.
3to determine the sample size for a test of controls, an auditor should consider the tolerable deviation rate, the desired confidence level, and the
a. expected population deviation rate.
b. computed upper precision limit.
c. risk of assessing control risk too high.
d. risk of incorrect rejection.
4which of the following combinations results in the greatest decrease in sample size in an attribute sample for a test of controls?
questions 5 and 6 are based on the following information: an auditor desired to test credit approval on 10,000 sales invoices processed during the year. the auditor designed a statistical sample that would provide 1 percent risk of assessing control risk too low for the assertion that not more than 7 percent of the sales invoices lacked approval. the auditor estimated from previous experience that about 21/2 percent of the sales invoices lacked approval. a sample of 200 invoices was examined, and 7 of them were lacking approval. the auditor then determined the computed upper deviation rate to be 8 percent.
5in the evaluation of this sample, the auditor decided to increase the level of the preliminary assessment of control risk because the
a. tolerable deviation rate (7 percent) was less than the computed upper deviation rate (8 percent).
b. expected population deviation rate (7 percent) was more than the percentage of errors in the sample (3 1⁄2 percent).
c. computed upper deviation rate (8 percent) was more than the percentage of errors in the sample (3 1⁄2 percent).
d. expected population deviation rate (2 1⁄2 percent) was less than the tolerable deviation rate (7 percent).
6the allowance for sampling risk was
a. 5 1⁄2 percent.
b. 4 1⁄2 percent.
c. 3 1⁄2 percent.
d. 1 percent.
7the following table depicts the auditor’s estimated computed upper deviation rate compared with the tolerable deviation rate, and it also depicts the true population deviation rate compared with the tolerable deviation rate.
as a result of tests of controls, the auditor assesses control risk higher than necessary and thereby increases substantive testing. this is illustrated by situation
a. 1
b. 2
c. 3
d. 4
8which of the following statements is correct concerning statistical sampling in tests of controls?
a. deviations from controls at a given rate usually result in misstatements at a higher rate.
b. as the population size doubles, the sample size should also double.
c. the qualitative aspects of deviations are not considered by the auditor.
d. there is an inverse relationship between the sample size and the tolerable deviation rate.
9what is an auditor’s evaluation of a statistical sample for attributes when a test of 50 documents results in three deviations if the tolerable deviation rate is 7 percent, the expected population deviation rate is 5 percent, and the allowance for sampling risk is 2 percent?
a. the planned assessed level of control risk should be modified because the tolerable deviation rate plus the allowance for sampling risk exceeds the expected population deviation rate.
b. the sample results should be accepted as support for the planned assessed level of control risk because the sample deviation rate plus the allowance for sampling risk exceeds the tolerable deviation rate.
c. the sample results should be accepted as support for the planned assessed level of control risk because the tolerable deviation rate less the allowance for sampling risk equals the expected population deviation rate.
d. the planned assessed level of control risk should be modified because the sample deviation rate plus the allowance for sampling risk exceeds the tolerable deviation rate.
10as a result of sampling procedures applied as tests of controls, an auditor incorrectly assesses control risk lower than appropriate. the most likely explanation for this situation is that
a. the deviation rates of both the auditor’s sample and the population exceed the tolerable deviation rate.
b. the deviation rates of both the auditor’s sample and the population are less than the tolerable deviation rate.
c. the deviation rate in the auditor’s sample is less than the tolerable deviation rate, but the deviation rate in the population exceeds the tolerable deviation rate.
d. the deviation rate in the auditor’s sample exceeds the tolerable deviation rate, but the deviation rate in the population is less than the tolerable deviation rate.
1an advantage of statistical sampling over nonstatistical sampling is that statistical sampling helps an auditor to
a. eliminate the risk of nonsampling errors.
b. reduce audit risk and materiality to a relatively low level.
c. measure the sufficiency of the evidential matter obtained.
d. minimize the failure to detect errors and fraud.
2samples to test internal controls are intended to provide a basis for an auditor to conclude whether
a. the controls are operating effectively.
b. the financial statements are materially misstated.
c. the risk of incorrect acceptance is too high.
d. materiality for planning purposes is at a sufficiently low level.
3to determine the sample size for a test of controls, an auditor should consider the tolerable deviation rate, the desired confidence level, and the
a. expected population deviation rate.
b. computed upper precision limit.
c. risk of assessing control risk too high.
d. risk of incorrect rejection.
4which of the following combinations results in the greatest decrease in sample size in an attribute sample for a test of controls?
questions 5 and 6 are based on the following information: an auditor desired to test credit approval on 10,000 sales invoices processed during the year. the auditor designed a statistical sample that would provide 1 percent risk of assessing control risk too low for the assertion that not more than 7 percent of the sales invoices lacked approval. the auditor estimated from previous experience that about 21/2 percent of the sales invoices lacked approval. a sample of 200 invoices was examined, and 7 of them were lacking approval. the auditor then determined the computed upper deviation rate to be 8 percent.
5in the evaluation of this sample, the auditor decided to increase the level of the preliminary assessment of control risk because the
a. tolerable deviation rate (7 percent) was less than the computed upper deviation rate (8 percent).
b. expected population deviation rate (7 percent) was more than the percentage of errors in the sample (3 1⁄2 percent).
c. computed upper deviation rate (8 percent) was more than the percentage of errors in the sample (3 1⁄2 percent).
d. expected population deviation rate (2 1⁄2 percent) was less than the tolerable deviation rate (7 percent).
6the allowance for sampling risk was
a. 5 1⁄2 percent.
b. 4 1⁄2 percent.
c. 3 1⁄2 percent.
d. 1 percent.
7the following table depicts the auditor’s estimated computed upper deviation rate compared with the tolerable deviation rate, and it also depicts the true population deviation rate compared with the tolerable deviation rate.
as a result of tests of controls, the auditor assesses control risk higher than necessary and thereby increases substantive testing. this is illustrated by situation
a. 1
b. 2
c. 3
d. 4
8which of the following statements is correct concerning statistical sampling in tests of controls?
a. deviations from controls at a given rate usually result in misstatements at a higher rate.
b. as the population size doubles, the sample size should also double.
c. the qualitative aspects of deviations are not considered by the auditor.
d. there is an inverse relationship between the sample size and the tolerable deviation rate.
9what is an auditor’s evaluation of a statistical sample for attributes when a test of 50 documents results in three deviations if the tolerable deviation rate is 7 percent, the expected population deviation rate is 5 percent, and the allowance for sampling risk is 2 percent?
a. the planned assessed level of control risk should be modified because the tolerable deviation rate plus the allowance for sampling risk exceeds the expected population deviation rate.
b. the sample results should be accepted as support for the planned assessed level of control risk because the sample deviation rate plus the allowance for sampling risk exceeds the tolerable deviation rate.
c. the sample results should be accepted as support for the planned assessed level of control risk because the tolerable deviation rate less the allowance for sampling risk equals the expected population deviation rate.
d. the planned assessed level of control risk should be modified because the sample deviation rate plus the allowance for sampling risk exceeds the tolerable deviation rate.
10as a result of sampling procedures applied as tests of controls, an auditor incorrectly assesses control risk lower than appropriate. the most likely explanation for this situation is that
a. the deviation rates of both the auditor’s sample and the population exceed the tolerable deviation rate.
b. the deviation rates of both the auditor’s sample and the population are less than the tolerable deviation rate.
c. the deviation rate in the auditor’s sample is less than the tolerable deviation rate, but the deviation rate in the population exceeds the tolerable deviation rate.
d. the deviation rate in the auditor’s sample exceeds the tolerable deviation rate, but the deviation rate in the population is less than the tolerable deviation rate.
Skills Required:
Project Stats:
Price Type: Negotiable
Expired
Total Proposals: 10
1 Current viewersl
102 Total views
Project posted by:
Proposals
Proposals
Reputation
Price offered

I can help you215 Jobs 139 Reviews $0 in 0 Day
 37 Jobs 24 Reviews $0 in 0 Day

Hi, Contact me for quality work in time.309 Jobs 189 Reviews $30 in 0 Day

I can help you. Plz contact me.462 Jobs 283 Reviews $0 in 0 Day


Contact me please. Thanks.287 Jobs 248 Reviews $0 in 0 Day

Consider my application for the job, I can assure you that I will deliver quality work, and in a tim...more74 Jobs 28 Reviews $0 in 0 Day