Module E

A professional audit office scene with an auditor reviewing financial documents, emphasizing the concept of sampling and risk assessment in auditing processes.

Audit Sampling Essentials Quiz

Test your knowledge on the critical aspects of audit sampling with our engaging quiz! This quiz is designed to help you understand key concepts and techniques in statistical and non-statistical sampling methodologies commonly used in auditing.

Here’s what you’ll learn:

The fundamentals of sampling in auditing.
Different sampling methods and their applications.
Risks associated with sampling and how to mitigate them.

24 Questions6 MinutesCreated by EvaluatingEagle314

The set of items about which a conclusion is made in a sampling application is referred to as a(n)

Population

Sample

Sampling unit.

Population unit.

Nonsampling risk can occur in which of the following types of sampling plans:

Statistical sampling: No; Nonstatistical sampling: No

Statistical sampling: Yes; Nonstatistical sampling: No

Statistical sampling: Yes; Nonstatistical sampling: Yes

Statistical sampling: No; Nonstatistical sampling: Yes

The probability that an auditor's conclusion based on a sample might be different from the conclusion based on the entire population identifies the concept of:

Confidence levels.

Nonstatistical sampling.

Sampling risk.

Nonsampling risk.

Which of the following types of sampling applications can appropriately be used under generally accepted auditing standards?

Statistical sampling: No; Nonstatistical sampling: Yes

Statistical sampling: Yes; Nonstatistical sampling: Yes

Statistical sampling: Yes; Nonstatistical sampling: No

Statistical sampling: No; Nonstatistical sampling: No

In sampling an individual makes a statement about a ________ of interest by examining a ________ (or subset) of items.

Sampling unit; population.

Sample; population

) population; sample.

Population; sampling unit.

Which of the following steps in the sampling process is ordinarily performed last?

Measure sample items.

Determine the objective of sampling.

Define the characteristic of interest.

Evaluate the sample results.

After the auditor has defined the population to be examined the next step would be to:

Select the sample items

Define the characteristic of interest.

Measure the sample items.

Determine the sample size.

The method of sample selection in which a random starting point is selected and a fixed number of items are bypassed prior to the next item being selected is referred to as:

Unrestricted random selection

Systematic random selection.

Block selection.

Haphazard selection

A sample selection method in which items are selected in a nonsystematic manner is referred to as:

Haphazard selection.

Systematic random selection

Unrestricted random selection

Block selection.

A sample selection method in which a series of contiguous items are selected from the population is referred to as:

Unrestricted random selection

Block selection.

Systematic random selection.

Haphazard selection.

The type of sampling most frequently used by the auditors during their substantive procedures is referred to as:

Attributes sampling.

Variables sampling.

Account balance sampling.

Item sampling.

Which of the following characteristics of substantive procedures is most closely associated with the use of sampling?

Timing of further audit procedures.

Extent of further audit procedures

Nature of further audit procedures.

All of these are closely associated with the use of sampling.

Which of the following sampling risks is associated with the use of variables sampling?

Risk of underreliance: No; Risk of incorrect rejection: Yes

Risk of underreliance: Yes; Risk of incorrect rejection: No

Risk of underreliance: Yes; Risk of incorrect rejection: Yes

Risk of underreliance: No; Risk of incorrect rejection: No

Which of the following components of the audit risk model is most closely associated with variables sampling?

Audit risk.

Risk of material misstatement.

Analytical procedures risk.

Detection risk.

When the auditor concludes that the account balance is not materially misstated when, in fact, it is materially misstated, the auditor has committed the:

Risk of overreliance.

Risk of incorrect rejection

) risk of incorrect acceptance

Risk of underreliance.

Which of the following has a direct relationship with sample size in a variables sampling application?

Tolerable misstatement: Yes; Expected error: No

) Tolerable misstatement: No; Expected error: No

Tolerable misstatement: Yes; Expected error: Yes

Tolerable misstatement: No; Expected error: Yes

Which of the following actions can be used to control the audit team's exposure to sampling risk?

Determining an appropriate sample size.

Performing appropriate types of audit Procedures

Which of the following sample selection techniques can be used with statistical sampling applications?

Block Selection

Haphazard Selection

None of the above.

All of the above

The maximum rate of deviation that may exist in the operation of a control policy or procedure before the auditors would reduce reliance on internal control is referred to as:

Control risk.

Acceptable rate of deviation.

Upper limit rate of deviation.

Tolerable rate of deviation.

The upper limit on misstatement is:

An adjustment of the sample estimate of misstatement to reflect the desired level of sampling risk.

The maximum misstatement that could exist before auditors would conclude that the account balance is not fairly stated.

The maximum rate of deviation that could exist before auditors would reduce the reliance on an internal control.

An adjustment of the sample deviation rate to reflect the desired level of sampling risk.

When examining the client's internal control, what is the relationship of the expected rate of deviation and risk of overreliance on sample size?

Direct for both

Direct for expected rate of deviation and Inverse for risk of overreliance.

Inverse for both

Inverse for expected rate of deviation and Direct for risk of overreliance

Which of the following sampling activities is not performed during the planning stage of the audit?

Define the population.

Determine the objective of sampling.

Define the characteristic of interest

Determine the sample size.

Documentation is required during which of the following stages of the sampling process?

Measuring Sample items

Evaluating Sample Items

Both of these.

None of these

Tests performed by auditors that examine evidence for both control attributes and monetary misstatements are known as:

Dual-purpose tests.

Standard-purpose tests.

Substantive tests.

Multi-function tests.

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Audit Sampling Essentials Quiz

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