Audit Sampling Quiz

What is audit sampling?

• Selecting all items in a population

• Selecting some items from a population

• Ignoring the population

• Counting items without selection

What does ISA530 explain about audit sampling?

• It is not related to auditing

• It requires 100% of items

• It allows selection of less than 100% of items

• It is only for large populations

Which is NOT a sampling method mentioned in ISA530?

• Haphazard selection

• Random selection

• Systematic selection

• Randomized control

What is sampling risk?

• Risk of auditing every item

• Risk of selecting too many items

• Risk of incorrect conclusions from a sample

• Risk of not auditing at all

What is the purpose of a test of controls?

• To evaluate external factors

• To count all transactions

• To check the effectiveness of internal controls

• To ignore internal controls

What should auditors compare their findings to?

• The auditor's guess

• The tolerable deviation rate

• The total population

• The client's opinion

What is a non-sampling approach?

• Selecting some items

• Examining every unit in the population

• Ignoring all items

• Sampling randomly

When might auditors examine every unit?

• When the client is not important

• When the population is small

• When the population is large

• When there are no risks

What is a substantive test used for?

• To check the reasonableness of financial items

• To count all items

• To evaluate internal controls

• To ignore financial statements

What does ISA530 emphasize?

• Only monetary units

• Ignoring all methods

• Three principal methods of selecting samples

• Only random selection