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Test%20Questions%20Chapter%2090

# Test%20Questions%20Chapter%2090 - Chapter 9 Audit Sampling...

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Chapter 9 Audit Sampling True/False Questions 1. Stratification of the population generally results in a more efficient sampling plan. Answer: True Difficulty: Medium 2. Discovery sampling is equivalent to an attributes sampling plan with a specified expected deviation rate of 0 percent. Answer: True Difficulty: Medium 3. Increases in the number of deviations in an attributes sample results in an increase in the achieved upper deviation rate of the attributes sample. Answer: True Difficulty: Medium 4. The definition of a "deviation" for a test of a control should include only those deviations that result in misstatements in the financial statements. Answer: False Difficulty: Hard 5. Statistical sampling cannot be used to test all control activities. Answer: True Difficulty: Medium 6. Using ratio and difference estimation for a sample is an example of a dual purpose test. Answer: False Difficulty: Medium 7. Increases in the tolerable misstatement result in a decreased sample size when using mean-per-unit estimation. Answer: True Difficulty: Medium 8. The mean book value of the items included in a mean-per-unit sample is not directly used in the evaluation of sample results. Answer: True Difficulty: Hard 134 Whittington, Principles of Auditing, Fifteenth Edition

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Chapter 9 Audit Sampling 9. When evaluating the results of a variables sampling plan, the projected misstatement is calculated and compared to the tolerable misstatement. Answer: True Difficulty: Easy 10. Auditors project the misstatements found in the sample to the population when using statistical sampling, but not when using nonstatistical sampling. Answer: False Difficulty: Medium Multiple Choice Questions Use the following to answer questions 11-13: The 10,000 accounts receivable of DEF Company have a total book value of \$120,000. A CPA has selected and audited a sample of 100 accounts with a total book value of \$1,000 and an audited value of \$1,200. 11. Using the difference estimation technique, estimated total audited value of the population is: A) \$100,000. B) \$120,000. C) \$140,000. D) \$144,000 Answer: C Difficulty: Medium 12. Using the ratio estimation technique, the estimated total audited value of the population is: 135 Whittington, Principles of Auditing, Fifteenth Edition
Chapter 9 Audit Sampling 13. Using the mean-per-unit estimation technique, the estimated total audited value of the population is:

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Test%20Questions%20Chapter%2090 - Chapter 9 Audit Sampling...

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