Chap009tb - Chapter 09 - Audit Sampling Chapter 09 Audit...

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Unformatted text preview: Chapter 09 - Audit Sampling Chapter 09 Audit Sampling True / False Questions 1. Stratification of the population generally results in a more efficient sampling plan. True False 2. Discovery sampling is equivalent to an attributes sampling plan with a specified expected deviation rate of 0 percent. True False 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. True False 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. True False 5. Statistical sampling cannot be used to test all control activities. True False 6. Using ratio and difference estimation for a sample is an example of a dual purpose test. True False 7. Increases in the tolerable misstatement result in a decreased sample size when using mean- per-unit estimation. True False 9-1 Chapter 09 - Audit Sampling 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. True False 9. When evaluating the results of a variables sampling plan, the projected misstatement is calculated and compared to the tolerable misstatement. True False 10. Auditors project the misstatements found in the sample to the population when using statistical sampling, but not when using nonstatistical sampling. True False Multiple Choice Questions 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 12. Using the ratio estimation technique, the estimated total audited value of the population is: A. $100,000. B. $120,000. C. $140,000. D. $144,000 9-2 Chapter 09 - Audit Sampling 13. Using the mean-per-unit estimation technique, the estimated total audited value of the population is: A. $100,000. B. $120,000. C. $140,000. D. $144,000. 14. Using the mean-per-unit estimation method an auditor has properly calculated the estimated total audited value of a population as $200,000. Her sample included 200 of the population's 40,000 items. She found that, in her sample the average audited value was $1 less than the average book value. What was the average audited value in the sample? A. $4. B. $5. C. $6. D. $10. 15. Using difference estimation, an auditor has taken a sample of 200 from a population's 40,000 items; that population has a book value of $200,000. She found that in her sample the average audited value was $4.20, while the average book value was $5.20. What is the estimated total audited value of the population?...
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This note was uploaded on 01/10/2012 for the course ACC 435A taught by Professor Hathcock during the Winter '11 term at National.

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Chap009tb - Chapter 09 - Audit Sampling Chapter 09 Audit...

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