16.An advantage of using stratification is: a.it increases audit efficiency. b.it can be used for groups with dissimilar characteristics. c.probability of selection is the same as random sampling. d.it is particularly effective in finding understatements. 17.Before selecting a sample, it is necessary to specify the expected error. The main purpose for doing this is: 18.Sample size is determined by the application of a statistically based formula which includes all of the following except: 19.Of the following factors which would have the effect of decreasing sample size for tests of control?

Page 5of 1120.An auditor is using statistical sampling for tests of controls. Which would be the most appropriate statistical sampling method to use? a.Attribute sampling plans. b.Variable sampling plans. c.Probability-proportional-to-size sampling. d.Dollar unit sampling. 21.Which of the following is an advantage of PPS sampling over variable sampling? 22.A situation in which variable sampling was preferable over PPS sampling would be: 23. Which of the following is not a function of maintaining inventory records? 24. If the auditor was testing inventory pricing the audit objective being fulfilled would be: a. completeness. b. rights and obligations. c. existence. d. valuation and allocation.