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    CHAPTER 8 Auditing-Theory-MCQs-by-Salosagcol-with-answers

    Uploaded by

    Mich

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 1

    CHAPTER 8 d.

    Computerized selection
    1. This involves the application of the procedures to less than 100%
    of the items within an account balance or class of transactions.11. A method of sampling in which all the items in the population are
    This enables the auditor to obtain and evaluate audit evidence divided into two or more sub-population is
    about some characteristics of the selected items in order to form a. Variable sampling
    an opinion about the characteristics of all items supporting an b. Stratified sampling
    account balance or transaction class. c. Attribute sampling
    a. Audit techniques d. Divisible sampling
    b. Selective testing
    c. Audit sampling 12. If the auditor is concerned that a population may contain
    d. Specific identification exceptions, the determination of a sample size sufficient to
    include at least one such exception is a characteristic of
    2. Audit sampling for substantive tests is appropriate when a. Discovery sampling
    a. Analytical procedures are used b. Random sampling
    b. The auditor wants to eliminate sampling risks c. Variables sampling
    c. A population contains small number of large value items d. Peso-unit sampling
    d. Tests of details are performed
    13. Which of the following statistical sampling plans does not use a
    3. Audit sampling for test of control is generally appropriate when fixed sample size for tests of controls?
    a. Control leaves evidence of performance a. PPS sampling
    b. Control leaves no evidence of performance b. Value-weighted sampling
    c. 100% of the transactions is tested c. Sequential sampling
    d. Examining specific high value items in the population d. Variables sampling

    4. In a sampling application, the group of items about which the14. Value weighted sampling is most appropriate when the auditor
    auditor wants to estimate some characteristic is called the a. Anticipates understatement errors
    a. Population c. b. Expects no errors
    Attribute of interest c. Anticipate overstatement errors
    b. Sample d. d. Has assessed control risk at high level
    Sampling unit
    15. The maximum amount of error in a population that the auditor is
    5. Non-sampling error occur when the audit tests do not uncover willing to accept is referred to as the
    existing exceptions in the a. Acceptable risk
    a. Population b. Tolerable error
    b. Planning stage c. Expected error
    c. Sample d. Tolerable materiality
    d. Financial statement
    16. The deviation rate the auditor expects to find in the population,
    6. PSA 530 identifies two general approaches to audit sampling. before testing begins, is called the
    They are a. Tolerable deviation rate
    a. Random & nonrandom b. Computer upper deviation rate
    b. Statistical & nonstatistical c. Sample deviation rate
    c. Precision & reliability d. Expected deviation rate
    d. Risk and nonrisk
    17. Which of the following sampling methods would be most
    7. The relationship between sample size and the allowable sampling appropriate in performing tests of controls over authorization of
    risks is cash disbursements
    a. Direct a. Attributes
    b. Inverse b. Variables
    c. Sample deviation rate c. Ratio
    d. Expected deviation rate d. Stratified

    8. Principal methods of sampling selection include all of the18. In assessing sample risk, alpha risk relate to the
    following except a. Efficiency of the audit
    a. Haphazard b. Selection of the sample
    b. Random number c. Effectiveness of the audit
    c. Systematic d. Audit quality controls
    d. Statistical
    19. Which of the following sampling plans would be designed to
    9. A sample in which every possible combination of items in the estimate a numerical measurement of a population such as peso
    population has a chance of constituting the sample is a value?
    a. Representative sample a. Numerical sampling
    b. Random sample b. Sampling attributes
    c. Statistical sample c. Discovery sampling
    d. Judgment sample d. Sampling for variables

    10. The process which requires the calculation of an interval and them20. Statistical samples do not allow
    selects the items based on the size of the interval is a. A. more efficient samples
    a. Statistical sampling b. Measurement of sample reliability
    b. Systematic selection c. Replacement of the auditor’s professional judgment
    c. Random selection d. Measurement of sample risk

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