Audit - G Student 1 Which component of the expanded audit...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
G Student: ___________________________________________________________________________ 1. Which component of the expanded audit risk model is most closely associated with the risk of incorrect acceptance? A. Analytical procedures risk. B. Risk of Material Misstatement. C. Nonsampling risk. D. Test of details risk. 2. The sampling method used to examine a population when the auditor wants to estimate a continuous amount (or value) of the population is: A. Attributes sampling. B. Balance sampling. C. Discovery sampling. D. Variables sampling. 3. Which of the following would not be estimated using variables sampling? A. The balance in the client's accounts receivable. B. The extent to which an internal control procedure is not functioning as intended. C. The amount of misstatement in a client's inventory. D. All of the above would be estimated using variables sampling. 4. Which of the following courses of action would an auditor most likely follow in planning a sample of cash disbursements if the auditor is aware of several unusually large cash disbursements? A. Set the tolerable misstatement at a lower level than originally planned. B. Stratify the cash disbursements population so that the unusually large disbursements are selected. C. Increase the sample size to reduce the effect of the unusually large disbursements. D. Continue to draw new samples until all the unusually large disbursements appear in the sample. 5. The total amount of actual monetary misstatement found in a sample is referred to as the: A. Projected misstatement. B. Tolerable misstatement. C. Actual misstatement. D. Incremental allowance for sampling risk. 6. Which of the following is not an advantage associated with monetary unit sampling (MUS)? A. MUS sampling methods typically include transactions or components reflecting relatively large dollar amounts. B. MUS sampling methods are more effective in identifying overstatement errors. C. MUS sampling methods provide a conservative (higher) estimate of misstatement in the account balance or class of transactions. D. MUS sampling methods typically result in relatively small sample sizes.
Background image of page 1

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

View Full Document Right Arrow Icon
7. The amount at which an item would be recorded assuming no mistakes in judgment or incorrect applications of generally accepted accounting principles were made is the: A. Audited value. B. Expected error. C. Recorded value. D. Tolerable misstatement. 8. The auditor's sample would indicate that the client's account balance is fairly stated when the _____ is less than the _____. A. Upper limit on misstatement; tolerable misstatement B. Actual misstatement; tolerable misstatement C. Tolerable misstatement; upper limit on misstatement D. Tolerable misstatement; actual misstatement 9. How does monetary unit sampling (MUS) ensure that larger dollar components are selected for examination? A
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 63

Audit - G Student 1 Which component of the expanded audit...

This preview shows document pages 1 - 3. Sign up to view the full document.

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