MODE - Module E - Overview of Sampling Module E Overview of...

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

View Full Document Right Arrow Icon
Module E - Overview of Sampling Module E Overview of Sampling Multiple Choice Questions 1. The set of items about which a statement is made in a sampling application is referred to as a (n): A. Sampling unit B. Sample C. Population unit D. Population Difficulty: Easy Source: Original 2. Which of the following is not an advantage of statistical sampling? A. It requires a precise and definite approach to the audit problem B. It incorporates evaluation that calculates a direct relation between the sample results and the entire population under audit C. It requires auditors to specify particular judgments on risk and materiality D. It permits the auditor to reapply evaluation judgments based on factors in addition to the sample evidence Difficulty: Hard Source: Original 3. Nonsampling risk can occur in which of the following types of sampling plans: A. Statistical sampling: Yes; Nonstatistical sampling: Yes B. Statistical sampling: Yes; Nonstatistical sampling: No C. Statistical sampling: No; Nonstatistical sampling: Yes D. Statistical sampling: No; Nonstatistical sampling: No Difficulty: Easy Source: Original MODE-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
Module E - Overview of Sampling 4. The probability that an auditor's conclusion based on a sample might be different from the conclusion based on the entire population identifies the concept of: A. Confidence levels B. Nonsampling risk C. Nonstatistical sampling D. Sampling risk Difficulty: Easy Source: Original 5. Select the description that best illustrates sampling risk. A. Applying audit procedures, which are inappropriate for the audit objectives B. Failing to recognize misstatements or deviations in the documents examined C. Arriving at incorrect statistical conclusions due to computational errors D. Choosing a sample which has proportionately more errors than the population Difficulty: Medium Source: Original 6. An auditor is most likely to use statistical sampling under which of the following situations? A. Random numbers can be associated with population items B. Strictly defensible results based on mathematics are not necessary C. The auditor has a very good knowledge of the population D. The population is very diverse with some segments especially prone to misstatement Difficulty: Medium Source: Original 7. In which of the following situations would the use of sampling be most appropriate? A. The need for precise information is less important B. The number of items comprising the population is smaller C. The likelihood of selecting a representative sample is relatively low D. The use of sampling would be appropriate in all of the above situations Difficulty: Hard Source: Original MODE-2
Background image of page 2
Module E - Overview of Sampling 8. Which of the following measures would not be used to measure the auditor's exposure to sampling risk? A.
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.

Page1 / 22

MODE - Module E - Overview of Sampling Module E Overview of...

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