Mod FStudent: ___________________________________________________________________________1.Attributes sampling is most closely associated with the auditor's substantive procedures. True False2.After defining the deviations, the auditor would next identify the key controls to examine. True False3.When verifying the completeness assertion for sales transactions, the auditor would define the population as a shipping document for purposes of performing tests of controls. True False4.Of the two sampling risks associated with attributes sampling, auditors are more concerned with the risk of underreliance. True False5.The risk of overreliance exposes the auditor to an effectiveness loss. True False6.The risk of underreliance occurs when the auditor's estimate of the deviation rate exceeds the tolerable rate of deviation. True False7.Lower levels of control risk are typically associated with lower levels of the risk of overreliance. True False8.The tolerable rate of deviation has an inverse relationship with control risk; that is, as the acceptable level of control risk decreases, the appropriate tolerable rate of deviation increases. True False9.The auditor determines the expected population deviation rate based on either prior audit experience or a pilot sample from the current year. True False10.The expected population deviation rate has an inverse relationship with the sample size. True False11.The auditor's sample size increases proportionally with increases in the population size. True False12.The sample rate of deviation is determined by dividing the number of deviations by the size of the population. True False13.To measure sample items in an attributes sampling application, the auditor performs the appropriate test of controls. True False14.The upper limit rate of deviation has a (risk of overreliance) probability of being less than the true population deviation rate. True False15.As the risk of overreliance decreases, the upper limit rate of deviation increases, holding all other factors constant. True False

16.The upper limit rate of deviation is equal to the sample rate of deviation minus the allowance for sampling risk. True False17.If the upper limit rate of deviation exceeds the tolerable rate of deviation, the auditor may decide to increase the assessment of control risk. True False18.The auditor's sample results must yield higher upper limit rate of deviation in order to support lower levels of control risk. True False19.In addition to the quantitative measure of deviations, the auditor should also consider qualitative measures, such as the pervasiveness and source of the deviations. True False20.Discovery sampling is ordinarily used when deviations from control procedures occur at a relatively low rate and are extremely important in the audit examination.

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