Question: Chapter 9 Audit Sampling 1.Three factors that determine the sample size are the risk of assessing control risk too high, tolerable deviation rate, and the

Chapter 9 Audit Sampling

1.Three factors that determine the sample size are the risk of assessing control risk too high, tolerable deviation rate, and the expected population deviation rate.

a. True

b.False

2.While performing a substantive test of details during an audit, the auditor determined that the sample results supported the conclusion that the recorded account balance was materially misstated. It was, in fact, not materially misstated. This situation illustrates the risk of

a. Incorrect rejection

b. Incorrect acceptance

c. Assessing control risk too low

d.Assessing control risk too high

3.which of the following statistical selection techniques is least desirable for use by an auditor?

a. block selection

b. stratified selection

c. systematic selection

d. sequential selection

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