Wiley CPA Review Questions – AUD
Wiley CPA Software
- Which of the following is included as part of the definition of audit sampling?
- A: Inquiry and observation procedures..
- B: Documentary evidence.
- C: Evaluation of some characteristic.
- D: Statistical techniques
- A: Minimize the failure to detect errors and irregularities.
- B: Eliminate the risk of nonsampling errors.
- C: Reduce the level of audit risk and materiality to a relatively low amount.
- D: Measure the sufficiency of the evidential matter obtained.
- A: Choosing an audit procedure that is inconsistent with the audit objective.
- B: Choosing a sample size that is too small to achieve the sampling objective.
- C: Failing to detect an error on a document that has been inspected by the auditor.
- D: Failing to perform audit procedures that are required by the sampling plan.
- A: A randomly chosen sample may not be representative of the population as a whole on the characteristic of interest.
- B: An auditor may select audit procedures that are not appropriate to achieve the specific objective.
- C: An auditor may fail to recognize errors in the documents examined for the chosen sample.
- D: The documents related to the chosen sample may not be available for inspection.
- A: It provides for measuring mathematically the degree of uncertainty that results from examining only a part of the data.
- B: It allows the auditor to have the same degree of sampling risk as with nonstatistical sampling but with substantially less work.
- C: It allows the auditor to substitute sampling techniques for audit judgment.
- D: It provides for measuring the actual misstatements in financial statements in terms of sampling risk and allowance for sampling risk.
An advantage of statistical sampling over nonstatistical sampling is that statistical sampling helps an auditor to
Which of the following is an element of sampling risk?
Which of the following best illustrates the concept of sampling risk?
Which of the following best describes the distinguishing feature of statistical sampling?