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Questions and Answers
What is the primary consideration when determining the extent of substantive procedures?
What is the primary consideration when determining the extent of substantive procedures?
- Risks of material misstatement (correct)
- Monetary-unit sampling technique
- Tolerable misstatement or deviation rate
- Operating effectiveness of internal control
What is the purpose of using confidence factors in audit sampling?
What is the purpose of using confidence factors in audit sampling?
- To determine the sample size (correct)
- To select physical units for testing
- To reduce the risks of material misstatement
- To increase the level of risk reduction
What is the benefit of testing the operating effectiveness of internal control?
What is the benefit of testing the operating effectiveness of internal control?
- It improves the accuracy of audit sampling
- It reduces the sample size required
- It increases the risks of material misstatement
- It reduces the extent of substantive procedures (correct)
What is the characteristic of monetary-unit sampling?
What is the characteristic of monetary-unit sampling?
What happens to the extent of substantive procedures if the results of testing internal control are unsatisfactory?
What happens to the extent of substantive procedures if the results of testing internal control are unsatisfactory?
What is the relationship between the confidence factor and sample size in audit sampling?
What is the relationship between the confidence factor and sample size in audit sampling?
What is the primary concern of an auditor when it comes to sampling risk?
What is the primary concern of an auditor when it comes to sampling risk?
What is the term for the entire set of data from which a sample is selected and about which the auditor wishes to draw conclusions?
What is the term for the entire set of data from which a sample is selected and about which the auditor wishes to draw conclusions?
What is the risk that the auditor reaches an erroneous conclusion for any reason not related to sampling risk?
What is the risk that the auditor reaches an erroneous conclusion for any reason not related to sampling risk?
What is the purpose of selecting a sample in audit sampling?
What is the purpose of selecting a sample in audit sampling?
What is the risk that the auditor's conclusion based on a sample may be different from the conclusion if the entire population were subjected to the same audit procedure?
What is the risk that the auditor's conclusion based on a sample may be different from the conclusion if the entire population were subjected to the same audit procedure?
What is the term for the selection and evaluation of less than 100 percent of the population of audit relevance?
What is the term for the selection and evaluation of less than 100 percent of the population of audit relevance?
What is the primary purpose of removing high-value and key items from the population during the sampling process?
What is the primary purpose of removing high-value and key items from the population during the sampling process?
What is the term for the chance that an audit sample will not detect a material misstatement that exists in a population?
What is the term for the chance that an audit sample will not detect a material misstatement that exists in a population?
In a sample of 50 items from a population of 250,000, what is the purpose of calculating the sampling interval?
In a sample of 50 items from a population of 250,000, what is the purpose of calculating the sampling interval?
What is the confidence level that corresponds to a confidence factor of 2.3?
What is the confidence level that corresponds to a confidence factor of 2.3?
What is the next step after calculating the sampling interval in the audit sampling process?
What is the next step after calculating the sampling interval in the audit sampling process?
What is the purpose of projecting misstatements in audit sampling?
What is the purpose of projecting misstatements in audit sampling?
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