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tif_ch17 (1) - CHAPTER 17 Multiple-Choice Questions 1 easy...

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CHAPTER 17 Multiple-Choice Questions 1. easy When monetary-unit sampling has been concluded and the population is not considered acceptable, which one of the following courses of action would not be appropriate? B a. Increase the sample size to see if this may satisfy the auditor’s tolerable misstatement requirements. b. Increase the tolerable misstatement amounts so that the error bounds are acceptable. c. Request the client to correct the population. d. Refuse to give an unqualified opinion. 2. Both sampling and nonsampling risks are associated with easy d 3. Tolerable misstatements for overstatements and understatements easy a 4. Monetary-unit sampling is most commonly used when easy d 5. Tests for rates of occurrence are appropriately used in all but which of the following situations? easy a. Testing of internal controls. c b. Substantive testing of transactions. c. Substantive testing of details of balances. d. Tests for rates of occurrence are appropriate for all of the above. 6. Which of the following is not a type of statistical method that provides results in dollar terms? easy b 7. When auditors sample for tests of details of balances, the objective is to determine easy a 8. easy The auditor must consider the possibility that the true population misstatement is greater than the amount of misstatement that is tolerable when the auditor is performing d 9. What is the purpose of stratification as used in applying stratified sampling to a population? easy a. To avoid items that may contain misstatements. b b. To emphasize certain items and deemphasize others. 17-1
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c. Either a or b. d. Neither a nor b.
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