11079-15-13RQ
AID: 1150 | 05/02/2014
An attributed can be explained as the definition of the characteristic being tested and the
exception condition when audit sampling is applied. The attributes of interest are
recognized from the audit program.
The exce
11079-15-12RQ
05/02/2014
AID: 1150 |
An attributed can be explained as the definition of the characteristic being tested and the
exception condition when audit sampling is applied. The attributes of interest are
recognized from the audit program.
In the t
11079-15-11RQ
05/02/2014
AID: 1150 |
Sampling error: Sample error is the error caused by observing a sample instead of entire
population. It is the inherent part of sampling. Sample error means that the sample is not
good representative of given whole pop
11079-15-10RQ
05/02/2014
AID: 1150 |
The tolerable exception rate (TER) represent the exception rate that that auditor will
allow in the population and willing to apply the assessed control risk and the monetary
misstatement amounts in the transactions es
11079-15-9RQ
05/02/2014
AID: 1150 |
Sampling unit: It is the item in the population from the auditor chooses sample items. The
main concern in the describing the sampling unit is making it reliable with the audit tests
objectives. Therefore, the populatio
11079-15-8RQ
05/02/2014
AID: 1150 |
Following terms can be defines as follows:
Term
Definition
a. Acceptable risk of
overreliance(ARO)
It is the risk that the auditor can take of
accepting control as effective or a monetary
misstatements rate as acceptabl
11079-15-7RQ
05/02/2014
AID: 1150 |
Block sample means the selection of numerous items in a sequence. When the first unit in
the block is selected, the other units remaining are chosen automatically. Therefore, to
pick 5 blocks of 20 sales invoices, one h
11079-15-6RQ
05/02/2014
AID: 1150 |
The main purpose of using non-statistical sample for substantive tests of transactions and
for test of controls is to do estimation of the proportion of items in a population
comprising an attribute or characteristic of
11079-15-5RQ
05/02/2014
AID: 1150 |
Systematic sampling: In this method the auditor calculates an interval and methodically
chose the items for the sample. The interval is calculated by dividing the population size
by number of sample items required.
To p
11079-15-4RQ
05/02/2014
AID: 1150 |
A simple random sample- It is a subset of statistical population in which every subsets
member has an equal chance of selection. Simple random selection has two methods:
a) Use to random number table
b) Using computer f
11079-15-3RQ
05/02/2014
AID: 1150 |
In replacement sampling, each unit in the population can be selected for the sample more
than once, if the random number corresponding to that each is picked more than once.
In non-replacement sampling, a unit can be se
11079-15-2RQ
05/02/2014
AID: 1150 |
In statistical sampling mathematical measurement techniques are used for computing
formal statistical results. Therefore, the auditor has to measures sampling risk when he
applies statistical sampling. In non-statistica
11079-15-1RQ
05/02/2014
AID: 1150 |
A representative sample is one which comprises a subset of all the contaminants of a
population in same proportion as they exist in the target population. If the population
includes substantial misstatements, but the sa
11079-15-1RP
AID: 1150 | 05/02/2014
a)
The auditor is always not sure whether he has a representative sample as the entire
population cannot be tested, but some things, such as using random selection, can
increase the possibility of a representative sampl
11079-16-35ICA
05/02/2014
AID: 1150 |
a)
It is satisfactory by auditor to confirm receivable before the date of balance sheet if the
clients internal control are suitable and may deliver sensible assurance that cash receipts,
sales are recorded appropriat
11079-16-34C
AID: 1150 | 05/02/2014
a) Major factors affecting the client business risk and acceptable audit risk can be
described as follows:
1) There are large numbers of loan to two domestic banks; both of them are not keen
to grant additional credit.
11079-16-33DQP
05/02/2014
AID: 1150 |
a) In evaluating the sample size, auditor should require the following information:
Total number of accounts having positive balance at December 31, 2013.
The significance of total receivables.
The size and distrib
11079-16-32DQP
05/02/2014
AID: 1150 |
Following is the table showing the matching of change in circumstance with the likely
test of details of balance response.
Change in Circumstance
Likely Test of Details of Balance
Response
1) Analytical procedures des
11079-16-30DQP
05/02/2014
AID: 1150 |
a) Substantive tests of transactions and tests of controls performed for allowance for
doubtful accounts are as follows:
i) Test of controls performed for the credit approval and authorization of customers.
ii) Substa
11079-16-31DQP
05/02/2014
AID: 1150 |
a)
In some confirmations of receivable, certain type of stratification is required. A
distinctive approach to stratification is to ascertain the outstanding balances size and the
time period for the account has been o
11079-16-27DQP
05/02/2014
AID: 1150 |
Following the table showing the type of evidence, type of tests, and objectives for the
given transactions:
a.
Type of Evidence
b.
Type of Test
c and d
Objectives(s)
1. Reperformance
2. Documentation
3. Documentation
11079-16-26DQP
05/02/2014
AID: 1150 |
a) A shipment must be documented as a sale on the shipment date or transferring the
title, whichever occurs first.
b) The sales invoice no. might be unnoticed, except to ascertain the shipping
document no.
Invoice No.
11079-16-25DQP
05/02/2014
AID: 1150 |
A table identifying the type of test and balance-related audit objective can be prepared as
follows:
a.
Type of Test
b.
Balance-Related
Audit Objective
1
2
3
4
Test of details of balance
Test of details of balance
Sub
11079-16-29DQP
05/02/2014
AID: 1150 |
a)
When assessing the gathering of receivable, auditor might analysis the aging of
receivables, discuss with client about collection of individual accounts, and inspect the
financial statement of some major customers
11079-16-28DQP
05/02/2014
AID: 1150 |
a) In performing audit, auditor generally uses two types of following confirmation:
1) Positive confirmation:
2) Negative confirmation.
In a positive confirmation a letter is send to the debtors, to responding auditor
11079-16-24DQP
05/02/2014
AID: 1150 |
A tables showing the balance related audit objective, preventive related audit objective,
and test of details of balance audit procedures for given transactions can be presented as
follows:
a. Balance Related
Audit Ob
11079-16-23DQP
05/02/2014
AID: 1150 |
A tables showing the balance related audit objective, preventive related audit objective,
and test of details of balance audit procedures for given transactions can be presented as
follows:
a. Balance Related Audit
Ob
11079-16-22MCQ
05/02/2014
AID: 1150 |
a) By making inquiring about accounts receivable pledged under loan agreement
provide auditor the most assertion relating to accuracy balance-related objective.
Therefore, the correct answer is option 3).
b) To uncove
11079-16-21MCQ
05/02/2014
AID: 1150 |
a) If auditor did not received replies of second confirmation by debtors, he should
enhance the assessed level of detection risk for the existence assertion.
Therefore, the correct answer is option 4).
b)
The negative