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Blooms apply aacsb analytical thinking aicpa bb

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Bloom's:ApplyAACSB:Analytical ThinkingAICPA:BB Critical Thinking; FN Decision Making16) An auditor is preparing to sample an entity's customer receivables for overstatement. Astatistical sampling method that automatically provides stratification when using systematicselection is:A) attribute sampling.B) ratio-estimation sampling.C) monetary-unit sampling.D) mean-per-unit sampling.Answer:CDifficulty: 1 EasyTopic:Monetary-Unit SamplingLearning Objective:09-02 Learn to apply monetary-unit sampling.Bloom's:UnderstandAACSB:Analytical ThinkingAICPA:BB Critical Thinking; FN Decision Making
17) Which of the following statements best describes an inherent limitation of the monetary-unitsampling method?A) It can only be used for substantive testing of asset accounts.B) It requires the use of a computer system to perform the required calculations.C) Misstatement rates must be large and the misstatements must be overstatements.D) Misstatement rates must be small and the misstatements must be overstatements.Answer:DDifficulty: 1 EasyTopic:Monetary-Unit SamplingLearning Objective:09-02 Learn to apply monetary-unit sampling.Bloom's:UnderstandAACSB:Analytical ThinkingAICPA:BB Critical Thinking; FN Risk Analysis18) For monetary-unit sampling, the number of items tested is:A) always equal to sample size.B) always greater than sample size.C) always greater than or equal to sample size.D) always less than or equal to sample size.Answer:DDifficulty: 1 EasyTopic:Monetary-Unit SamplingLearning Objective:09-02 Learn to apply monetary-unit sampling.Bloom's:UnderstandAACSB:Analytical ThinkingAICPA:BB Critical Thinking; FN Measurement19) Monetary-unit sampling should not be used if:A) the population includes several large items.B) the auditor expects overstatement errors.C) many items in the account are expected to have errors.D) no items in the account are expected to have errors.Answer:CDifficulty: 1 EasyTopic:Monetary-Unit SamplingLearning Objective:09-02 Learn to apply monetary-unit sampling.Bloom's:RememberAACSB:Analytical ThinkingAICPA:BB Critical Thinking; FN Decision Making
20) In monetary-unit sampling, population size is:A) the dollar balance in an account.B) the number of items in an account.C) unrelated to sample size.D) included in the denominator of the formula to determine sample size.Answer:ADifficulty: 1 EasyTopic:Monetary-Unit SamplingLearning Objective:09-02 Learn to apply monetary-unit sampling.Bloom's:RememberAACSB:Analytical ThinkingAICPA:BB Critical Thinking; FN Measurement21) Monetary-unit sampling is said to eliminate the need to stratify the sample because:A) sample items are selected in proportion to their dollar amount.B) the risk of incorrect acceptance is inversely related to sample size.C) tolerable misstatement is considered when determining sample size.

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Auditor s report, AACSB

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