1. Attributes sampling would be an appropriate method to use on which one of the following procedures in an audit program?

a. Review sales transactions for large and unreasonable amounts.

b. Observe whether the duties of the accounts receivable clerk are separate from handling cash.

c. Examine a sample of duplicate sales invoices for credit approval by the credit manager.

d. Review the aged schedule of accounts receivable to determine if receivables from officers are included

2. To determine if a sample is truly representative of the population, an auditor would be required to

a. conduct multiple samples of the same population.

b. never use sampling because of the expense involved.

c. audit the entire population.

d. use systematic sample selection.

3. Which of the following is the exception rate that the auditor expects to find before testing?

A) Sample exception rate

B) Estimated population exception rate

C) Computed exception rate

D) Tolerable exception rate

Answer rating: 100% (QA)

ANSWER 1 c Examine a sample of duplicate sales invoices for credit approval by the c... View the full answer