Questions from Auditing and Assurance

Q: Define monetary unit sampling and explain its importance in auditing. How

Define monetary unit sampling and explain its importance in auditing. How does it combine the features of attributes and variables sampling?

Q: Define what is meant by sampling risk. Does sampling risk apply

Define what is meant by sampling risk. Does sampling risk apply to nonstatistical sampling, MUS, attributes sampling, and variables sampling? Explain.

Q: What major difference between (a) Tests of controls and

What major difference between (a) Tests of controls and substantive tests of transactions (b) Tests of details of balances makes attributes sampling inappropriate for tests of details of balances? S...

Q: The 2,620 inventory items described in Question 17-14

The 2,620 inventory items described in Question 17-14 are listed on 44 inventory pages with 60 lines per page. There is a total for each page. The client's data are not in machine-readable form. Descr...

Q: Explain how the auditor determines tolerable misstatement for MUS.

Explain how the auditor determines tolerable misstatement for MUS.

Q: Identify the factors an auditor uses to decide the appropriate TER.

Identify the factors an auditor uses to decide the appropriate TER. Compare the sample size for a TER of 7% with that of 4%, all other factors being equal.

Q: Explain what is meant by acceptable risk of incorrect acceptance. What

Explain what is meant by acceptable risk of incorrect acceptance. What are the major audit factors affecting ARIA?

Q: Evaluate the following statement made by an auditor: "I took

Evaluate the following statement made by an auditor: "I took a random sample and derived a 90 percent confidence interval of $800,000 to $900,000. That means that the true population value will be bet...

Q: What is the relationship between ARIA and ARACR?

What is the relationship between ARIA and ARACR?

Q: What is meant by the "percent of misstatement assumption" for

What is meant by the "percent of misstatement assumption" for MUS in those population items that are misstated? Why is it common to use a 100% misstatement assumption when it is almost certain to be h...