1. The least appropriate sampling technique when the auditor suspects fraud
   1. Random selection
   2. Haphazard selection
   3. Systematic selection
   4. All of the above

2. Sampling risk is reduced
   1. By obtaining a larger sample
   2. By reviewing the auditors work
   3. By using a statistical sampling approach
   4. By using a non-statistical sampling approach

3. An auditor sampled sales and found a $1,000 error. This means that
   1. Client sales are misstated by $1,000
   2. Client sales are misstated by less than $1,000
   3. Client sales are misstated by more than $1,000
   4. None of these choices are necessarily true

4. When an auditor makes a mistake performing an audit test, this is classified as
   1. Sampling Risk
   2. Non-Sampling Risk
   3. Both A & B
   4. Cannot be determined

5. Applying random selection and a confidence interval of 97%, the chance that any one transaction is selected from a population of 100 transactions
   1. 1%
   2. 5%
   3. 95%
   4. Cannot be determined

6. Applying a statistical sampling technique,
   1. The auditor may not use professional judgment during the audit
   2. the auditor may not pick the sample size or the specific items to be tested
   3. the auditor may pick the sample size, but not the specific items to be tested
   4. the auditor may not pick the sample size, but may pick the specific items to be tested

7. Using a confidence interval of 85% and a balance with a population of 1,000 transactions, the chance that any specific 20 transactions are selected
   1. 2%
   2. 10%
   3. 90%
   4. Cannot be determined

8. When suing a statistical sampling technique,
   1. The auditor may not change the sample size
   2. the auditor may not use any professional judgment during the audit
   3. the auditor may not choose to increase the sample size, but may choose to decrease it
   4. the auditor may choose to increase the sample size, but may not choose to decrease it

9. The best sampling technique if the auditor suspects fraud is taking place
   1. Random selection
   2. Haphazard selection
   3. Systematic selection
   4. All of the above

10. Brigitte is using her laptop to create a sample. The sampling application crashes before it sends all of the transactions for testing. As a result, Brigitte tests fewer transactions than she should have. This problem was caused by
    1. Sampling Risk
    2. Non-Sampling Risk
    3. Type-I Sampling Risk
    4. Type-II Sampling Risk

11. An auditor tested an account with $100,000,000 balance by sampling 5% of all its transactions. The auditors sample was misstated by $10,000. Assuming a representative sample was obtained, which of the following is most correct?
    1. The account is likely misstated by less than $10,000
    2. The account is likely misstated by $10,000
    3. The account is likely misstated by more than $30,000
    4. Not enough information