# Question: TRUE FALSE QUESTIONS 1 Sampling can be used for both tests

TRUE-FALSE QUESTIONS

1. Sampling can be used for both tests of controls and direct tests of account balances and assertions.

2. Audit procedures such as inquiry, observation, and analytical procedures are the primary audit procedures involving audit sampling.

3. Sampling risk is the risk that the auditor's conclusion based on a sample might be different from the conclusion that would be reached if the audit procedure were applied in the same way to the entire population.

4. The risk of incorrect acceptance of internal control reliability is the risk that the auditor will conclude that the state of internal controls is not effective when internal controls are actually effective.

5. A benefit of nonstatistical sampling as compared to statistical sampling is that the sample size can be significantly smaller, thereby making the audit more efficient.

6. A benefit of statistical sampling as compared to nonstatistical sampling is that less auditor judgment is required because the auditor can leverage the power of probability theory.

7. Attributes sampling is a statistical sampling method used to estimate the rate of control procedure failures based on selecting one sample and performing the appropriate audit procedure.

1. Sampling can be used for both tests of controls and direct tests of account balances and assertions.

2. Audit procedures such as inquiry, observation, and analytical procedures are the primary audit procedures involving audit sampling.

3. Sampling risk is the risk that the auditor's conclusion based on a sample might be different from the conclusion that would be reached if the audit procedure were applied in the same way to the entire population.

4. The risk of incorrect acceptance of internal control reliability is the risk that the auditor will conclude that the state of internal controls is not effective when internal controls are actually effective.

5. A benefit of nonstatistical sampling as compared to statistical sampling is that the sample size can be significantly smaller, thereby making the audit more efficient.

6. A benefit of statistical sampling as compared to nonstatistical sampling is that less auditor judgment is required because the auditor can leverage the power of probability theory.

7. Attributes sampling is a statistical sampling method used to estimate the rate of control procedure failures based on selecting one sample and performing the appropriate audit procedure.

## Answer to relevant Questions

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