E - E Student: _ 1. The set of items about which a...

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E Student: ___________________________________________________________________________ 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. 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 overall materiality. D. It permits the auditor to reapply evaluation judgments based on factors in addition to the sample evidence. 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 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. 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. 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.
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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. 8. Which of the following types of sampling applications can appropriately be used under generally accepted auditing standards? 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 9. Which of the following would typically result in nonsampling risk?
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This note was uploaded on 10/04/2011 for the course SOM 6401 taught by Professor Chrits during the Spring '11 term at University of Texas at Austin.

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E - E Student: _ 1. The set of items about which a...

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