Chap009-App - Chapter 09 - Appendix Chapter 09 Appendix...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 09 - Appendix Chapter 09 Appendix True / False Questions 1. Increasing the expected misstatement for a probability-proportional-to-size sample increases the required sample size. True False 2. Probability-proportional-to-size sampling is especially efficient for populations with high misstatement rates. True False 3. The upper limit on misstatement in a probability-proportional-to-size sample plan consists of the total of the projected misstatement and the tolerable misstatement. True False 4. A normally distributed sample is assumed when using probability-proportional-to-size sampling. True False 5. An increase in the scope of analytical procedures may result in a lower allowable risk of incorrect acceptance for a substantive test of details. True False 9-App-1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter 09 - Appendix Multiple Choice Questions 6. In a probability-proportional-to-size sample with a sampling interval of $10,000, an auditor discovered that a selected account receivable with a recorded amount of $5000 had an audited amount of $4,000. If this were the only misstatement discovered by the auditor, the projected misstatement of this sample would be: A. $1,000. B. $2,000. C. $5,000. D. $10,000. 7. In a probability-proportional-to-size sample with a sampling interval of $10,000, an auditor discovered that as selected account receivable with a recorded amount of $12,000 had an audited amount of $9,000. If this were the only misstatement discovered by the auditor, the projected misstatement of this sample would be: A. $2,000. B. $2,500. C. $3,000. D. $10,000. 8. In a PPS sample, the most likely misstatement in the population is equal to the: A. Projected Misstatement. B. Upper limit on misstatement. C. Basic Precision. D. Total misstatements identified in the sample. 9. When no misstatements are identified in a PPS sample, the upper limit on misstatement equals. A. An amount dependent upon the sample's standard deviation. B. Basic precision. C. ½ of the allowance for sampling risk. D. Zero. 9-App-2
Background image of page 2
Chapter 09 - Appendix Assume the following relating to a PPS sample: Projected Misstatement = $20,000. Basic Precision = $16,000. Incremental Allowance = $4,500. Tolerable Misstatement = $34,000. 10. The upper limit on misstatement equals. A. $20,000. B. $20,500 C. $40,500. D. $74,500. 11. The allowance for sampling risk is equal to: A. $20,000. B. 20,500. C. $40,500. D. $74,500. 12. The most likely amount of misstatement in the population is equal to: A. $20,000. B. $20,500 C. $40,000. D. $40,500. E. $74,500. 13. Which statement is most proper for evaluating the results of this PPS sample? A. Accept the population because the projected misstatement is less than the tolerable misstatement. B. Accept the population because the sum of the projected misstatement and the basic
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/06/2011 for the course ECON 3332 taught by Professor Craig during the Spring '11 term at Rensselaer Polytechnic Institute.

Page1 / 16

Chap009-App - Chapter 09 - Appendix Chapter 09 Appendix...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online