Audit Sampling

1. When designing audit procedure, the auditor should determine the appropriate means of selecting items for testing. The means available to the auditor

• A. 100% examination (YES)

  Audit sampling (YES)

  Selecting specific items (YES)

• B. 100% examination (NO)

  Audit sampling (YES)

  Selecting specific (NO)

• C. 100% examination (NO)

  Audit sampling (YES)

  Selecting specific items (YES)

• A. 100% examination (NO)

  Audit sampling (NO)

  Selecting specific items (YES)

2. This involve the application of procedures to less than 100% of the items within an account balance or class of transaction. This enables the auditor to obtain and evaluate audit evidence about some characteristics of the selected items in order to to form an opinion about the characteristics of all the items supporting an account balance or transaction class.

• A. Audit techniques

• B. Selective testing

• C. Audit sampling

• D. Specific identification

3. Audit sampling for substantive is appropriate when

• A. analytical procedures are used

• B. The auditor wants to eliminate sampling risks

• C. A population contains small number of large value items

• D. Test of details are performed

4. Audit sampling for test of control is generally appropriate when

• A. control leaves evidence of performance

• B. control leaves no evidence of performance

• C. 100% of the transactions is tested

• D. examining specific high value items in the population

5. IN a sampling application, the group of items about which the auditor wants to estimate some characteristics is called the

• A. Population

• B. Sample

• C. Attribute of interest

• D. Sampling unit

6. An error tht arises from an isolated event that has not recurred other that on specifically identifiable occasions and is therefore not representative of errors in the population.

• a. tolerable error

• B. non-sampling error

• C. sampling error

• D. anomalous error

7. The possibility that the auditor's conclusion based on a sample may be different from the conclusion reached if the entire population were subjected to the same procedure is called

• A. Aaudit risk

• B. Non-sampling risk

• C. Sampling risk

• D. Detection

8. 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 characteristics of interest

• B. An audit may select audit procedure that are not appropriate to achieve the specific objective

• C. An auditor may fail to recognize errors in the documents examined for chosen sample

• D. The documents related to the chosen sample may not be available for inspection

9. One of the ways to reduce sampling risk is to

• A. Use an appropriate method of selecting sample items from the population.

• B. Carefully design the audit procedures to be used.

• C. Provide proper supervision and instruction of the audit team.

• D. Use variables sampling rather than attitude sampling.

10. Non-sampling errors occur when audit tests do not uncover existing exceptions in the

• A. Population

• B. Planning stage

• C. Sample

• D. Financial statement