110) When audit procedures have been completed for an attributes sampling application, the auditor must generalize from the sample to the population. Which of the following statements would be incorrect regarding this process?A) The auditor would use an attributes sampling table to determine the computed upper exception rate.B) If the sample size is not equal to those provided for in the attributes sampling evaluation tables, the auditor cannot use attribute sampling.C) It would be wrong for the auditor to conclude that the population exception rate is exactly the same as the sample exception rate.D) In selecting the table corresponding to the ARO, it should be the same as the ARO used for determining the initial sample size.Answer: B111) In the evaluation of the results of an attributes sample, the fact that the exception rate in the sample was 2% rather than the estimated population exception rate of 4% would cause the computed upper exception rate to:112) As the auditor you are assessing the proper sample size to use in testing controls. When using attributes sampling which of the following is most correct?113) In attributes sampling, an estimate of the expected population exception rate is necessary to plan the sample size. The relationship of expected population exception rate (EPER) to sample size is:114) If a potential loss on a contingent liability is remote, the liability usually is:A) disclosed in footnotes, but not accrued.B) neither accrued nor disclosed in footnotes.C) accrued and indicated in the body of the financial statements.D) disclosed in the auditor's report but not disclosed on the financial statements.Answer: B
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