5. The auditor using nonstatistical attributes sampling, but who nevertheless has chosen the sample in conformity with random selection procedures:

Need not consider the risk of assessing control risk too low. Has committed a nonsampling error. Will have to use discovery sampling techniques to evaluate the results. Should compare the deviation rate of the sample to the tolerable rate.

6. In performing a test of a control last year the auditors specified a tolerable deviation rate of X percent. This year the auditors have specified a tolerable rate of less than X percent. Assuming that all other factors remain the same, which of the following is true regarding the relationship between this year's sample size compared to last year's sample size?

This year's sample is larger than last year's sample. This year's sample is smaller than last year's sample. This year's sample is equal to last year's sample. This year's sample is indeterminate in relation to last year's sample.

7. The auditors expect a population deviation rate of billing errors of eight percent, and have established a tolerable rate of five percent. The sampling approach most likely to be used is:

Attributes sampling. Stratified random sampling. Variables sampling. None, as sampling does not seem appropriate in this situation.

8. In testing accounts receivable, an auditor sends out positive confirmation requests to 100 randomly selected customers. A customer returns the confirmation indicating that the balance is correct when, in fact, the balance is overstated. This is an example of:

Projected misstatement. Sampling error. Standard error. Nonsampling error.