Questions from Auditing and Assurance

Q: Considering each independently, a change in which of the following sample

Considering each independently, a change in which of the following sample planning factors would influence the sample size for a substantive test of details for a specific account?

Q: The risk of incorrect acceptance relates to the a. Effectiveness

The risk of incorrect acceptance relates to the a. Effectiveness of the audit. b. Efficiency of the audit. c. Planning materiality. d. Allowable risk of tolerable misstatement.

Q: Which of the following statements concerning monetary-unit sampling is correct

Which of the following statements concerning monetary-unit sampling is correct? a. The sampling distribution should approximate the normal distribution. b. Overstated units have a lower probability of...

Q: How would increases in tolerable misstatement and assessed level of control risk

How would increases in tolerable misstatement and assessed level of control risk affect the sample size in a substantive test of details?

Q: An auditor is performing substantive procedures of pricing and extensions of perpetual

An auditor is performing substantive procedures of pricing and extensions of perpetual inventory balances consisting of a large number of items. Past experience indicates that there may be numerous pr...

Q: Which of the following statements concerning the auditor’s use of statistical sampling

Which of the following statements concerning the auditor’s use of statistical sampling is correct? a. An auditor needs to estimate the dollar amount of the standard deviation of the population in orde...

Q: In classical variables sampling, which of the following must be known

In classical variables sampling, which of the following must be known in order to estimate the appropriate sample size required to meet the auditor’s needs in a given situation? a. The qualitative asp...

Q: Which of the following would most likely be an advantage in using

Which of the following would most likely be an advantage in using classical variables sampling rather than monetary-unit sampling? a. An estimate of the standard deviation of the population’s recorded...

Q: Koss Corporation is a publicly traded company that designs and sells stereo

Koss Corporation is a publicly traded company that designs and sells stereo headphones. The Koss family controls a majority of the Company’s stock. On November 17, 2010, Sujata “Sue” Sachdeva, the for...

Q: For the control activities to be effective, employees maintaining the accounts

For the control activities to be effective, employees maintaining the accounts receivable subsidiary ledger should not also approve a. Employee overtime wages. b. Credit granted to customers. c. Write...