1. Auditors consider statistical sampling to be characterized by the following:

a) Representative sample selection and nonmathematical consideration of the results.

b) Carefully biased sample selection and mathematical calculation of the results.

c) Representative sample selection and mathematical calculation of the results.

d) Carefully biased sample selection and nonmathematical consideration of the results.

2. In which of the following scenarios would the use of sampling be most appropriate?

a) The population consists of a relatively small number of items.

b) The need for precise information about the population is not important.

c) The decision to be made is relatively critical.

d) The costs associated with an incorrect decision are extremely high.

3. The risk that the decision made based on the sample will differ from the decision made based on the entire population is referred to as

a) Audit risk.

b) Examination risk.

c) Sampling risk.

d) Non-sampling risk.

4. Which of the following is not a method used by auditors to control their exposure to sampling risk during the examination?

a) Determining an appropriate sample size.

b) Performing the appropriate audit procedure.

c) Ensuring that all items have an equal opportunity to be selected.

d) Evaluating sample results using a mathematical basis.

5. Which of the following is an advantage of non-statistical sampling?

a) It controls the auditor's exposure to sampling risk.

b) It is required by generally accepted auditing standards.

c) It ensures that samples are randomly selected.

d) It is typically less expensive than statistical sampling.

Answer rating: 100% (QA)

1 c Representative sample selection and mathematical calc... View the full answer