Questions from Auditing and Assurance

Q: Which of the following combinations results in the greatest decrease in sample

Which of the following combinations results in the greatest decrease in sample size in an attribute sample for a test of controls? An auditor desired to test credit approval on 10,000 sales invoices...

Q: In the evaluation of this sample, the auditor decided to increase

In the evaluation of this sample, the auditor decided to increase the level of the preliminary assessment of control risk because the a. Tolerable deviation rate (7 percent) was less than the computed...

Q: Based on the information above, the planned allowance for sampling risk

Based on the information above, the planned allowance for sampling risk was a. 5½ percent. b. 4½ percent. c. 3½ percent. d. 1 percent.

Q: The following table depicts the possible outcomes for the auditor’s estimated computed

The following table depicts the possible outcomes for the auditor’s estimated computed upper deviation rate based on a sample relative to the auditor’s tolerable de...

Q: Which of the following statements is correct concerning statistical sampling in tests

Which of the following statements is correct concerning statistical sampling in tests of controls? a. Deviations from controls at a given rate usually result in misstatements at a higher rate. b. As t...

Q: Assume an auditor is evaluating a statistical attribute sample of 50 items

Assume an auditor is evaluating a statistical attribute sample of 50 items that resulted in three deviations. What should the auditor conclude if the tolerable deviation rate is 7 percent, the expecte...

Q: As a result of sampling procedures applied as tests of controls,

As a result of sampling procedures applied as tests of controls, an auditor incorrectly assesses control risk lower than appropriate. The most likely explanation for this situation is that a. The devi...

Q: On September 2, 2010, the Securities & Exchange Commission brought

On September 2, 2010, the Securities & Exchange Commission brought an action against Sujata Sachdeva, vice president of finance, and Koss senior accountant and subordinate, Julie Mulvaney, who alleged...

Q: Which of the following sampling methods would be used to estimate a

Which of the following sampling methods would be used to estimate a numeric measurement of a population, such as a dollar value? a. Random sampling. b. Numeric sampling. c. Attribute sampling. d. Vari...

Q: A number of factors influence the sample size for a substantive test

A number of factors influence the sample size for a substantive test of details of an account balance. All other factors being equal, which of the following would lead to a larger sample size? a. Grea...