2011 AUD

Wiley CPA Review Questions – AUD

From Wiley CPAexcel

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

An advantage of statistical sampling over nonstatistical sampling is that statistical sampling helps an auditor to


  • 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.


Which of the following is an element of sampling risk?


  • 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.



Which of the following best illustrates the concept of sampling risk?


  • 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.


Which of the following best describes the distinguishing feature of statistical sampling?


  • 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.


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Jeff Elliott

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