Auditing Practice Questions:

5. Auditors often utilize sampling methods when performing tests of controls. Which of the following sampling methods is most useful when testing account balances? a. Attribute sampling b. Variable sampling c. Unrestricted random sampling with replacement d. Stratified random sampling e. None of the above 6. Which of the following best describes the distinguishing feature of statistical sampling? a. It provides for mathematically measuring the degree of uncertainty that results from examining only a part of the data. b. It allows the auditor the same degree of confidence as with non-statistical sampling but with substantially less work. c. It allows the auditor to substitute sampling techniques for audit judgment. d. It provides for measuring the actual misstatement in financial statement in terms of reliability and precision. e. None of the above. 7. In attribute sampling which of the following must be known in order to appraise the results of the auditor's sample? a. Estimated dollar value of the population b. Standard deviation of the values in the population c. Actual deviation rate of the attribute in the population d. Deviation in sample. E. None of the above