Auditing: Statistical Sampling and Substantive Procedures
Learn about the importance of planning statistical sampling in auditing, and how it relates to the extent of substantive procedures required. Discover how the risks of material misstatement and internal control effectiveness impact the auditing process.
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Auditing: Statistical Sampling and Substantive Procedures
Quiz • 18 Questions
Auditing: Statistical Sampling and Substantive Procedures - Podcast
Podcast
Materials
List of Questions18 questions
- Question 1
- Risks of material misstatement
- Monetary-unit sampling technique
- Tolerable misstatement or deviation rate
- Operating effectiveness of internal control
- Question 2
- To determine the sample size
- To select physical units for testing
- To reduce the risks of material misstatement
- To increase the level of risk reduction
- Question 3
- 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
- Question 4
- Selection is based on the monetary value of the item
- Items are selected randomly
- Sample size is fixed
- Every 50th invoice is selected
- Question 5
- It is eliminated
- It remains the same
- It is increased
- It is reduced
- Question 6
- Higher confidence factor, larger sample size
- Lower confidence factor, larger sample size
- Higher confidence factor, smaller sample size
- Lower confidence factor, smaller sample size
- Question 7
- That controls are more effective than they actually are.
- That controls are less effective than they actually are.
- That a material misstatement does not exist when, in fact, it does.
- That a material misstatement exists when, in fact, it does not.
- Question 8
- Audit Sampling
- Population
- Sampling Risk
- Sample
- Question 9
- Non-sampling Risk
- Sampling Risk
- Audit Risk
- Population Risk
- Question 10
- To identify material misstatements
- To evaluate a representative portion of the population
- To evaluate the effectiveness of controls
- To evaluate the entire population
- Question 11
- Audit Risk
- Sampling Risk
- Non-sampling Risk
- Population Risk
- Question 12
- Sampling Risk
- Non-sampling Risk
- Audit Sampling
- Population
- Question 13
- To reduce the sampling interval
- To increase the sample size
- To reduce the confidence level
- To ensure separate consideration of these items
- Question 14
- Audit risk
- Detection risk
- Material risk
- Sampling risk
- Question 15
- To select the sample items
- To determine the confidence level
- To select the random starting point
- To determine the sample size
- Question 16
- 80%
- 85%
- 95%
- 90%
- Question 17
- Calculate the sample size
- Select the sample size
- Select the random starting point
- Select the sample items
- Question 18
- To calculate the sample size
- To evaluate the sampling interval
- To estimate the total misstatement in the population
- To determine the confidence level