RNGs and Sampling Techniques Quiz
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Questions and Answers

What type of selection is best for prenumbered items?

  • Haphazard Selection
  • Random Selection (correct)
  • Systematic Selection
  • Block Selection

    • Which of the following is true about managing non-sampling risks?

  • Adequate planning and training are not required
  • Proper direction, supervision and review are not necessary
  • Cannot be eliminated (correct)
  • Non-statistical methods are more effective

    • In attribute sampling, which relationship is correct regarding sample size and assessed RoMM (specifically CR)?

  • Direct
  • No relationship
  • Non-statistical relationship
  • Inverse (correct)

    • What does variable sampling involve?

    <p>Accept/Reject approach with one deviation</p> Signup and view all the answers

    Which of the following is a characteristic of attribute sampling?

    <p>Population size has significant impact</p> Signup and view all the answers

    What type of selection involves a higher probability for items with higher amounts?

    <p>Value-weighted selection</p> Signup and view all the answers

    What is the main advantage of using value-weighted selection for sampling?

    <p>It increases the chances of selecting items of higher value</p> Signup and view all the answers

    Which attribute testing method is least desirable due to a possible concentration of samples?

    <p>Block selection</p> Signup and view all the answers

    What does 'tolerable deviation rate' refer to in the context of internal control procedures?

    <p>Rate set by the auditor seeking assurance it won't be exceeded</p> Signup and view all the answers

    In attributes sampling, what is the approach regarding samples containing anomalous errors?

    <p>They are replaced as they are isolated events</p> Signup and view all the answers

    Which method uses each monetary unit as one sampling unit?

    <p>Value-weighted selection</p> Signup and view all the answers

    Why is systematic selection less desirable compared to other sampling methods?

    <p>It doesn't provide a random sample</p> Signup and view all the answers

    Which procedure is least likely reliable when used alone but enhances the reliability of other audit procedures?

    <p>Inspection</p> Signup and view all the answers

    What is the main difference between vouching and tracing?

    <p>Selects an item of transaction and follows/verifies it into the accounting records</p> Signup and view all the answers

    What is an example of a non-sampling risk associated with audit procedures?

    <p>Risk of under reliance (Type 1)</p> Signup and view all the answers

    Which factor contributes to managing sampling risks in auditing?

    <p>Choosing an appropriate sample selection method</p> Signup and view all the answers

    What is the purpose of using analytical procedures in auditing?

    <p>Comparing financial information with expectations</p> Signup and view all the answers

    When is tracing typically used in auditing?

    <p>Following up on individual transactions</p> Signup and view all the answers

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