QUIZ

 When selecting a sample size for substantive tests of balances which factor, other factors being equal, would result in a larger sample?

• Small expected misstatements

• A decrease in the tolerable misstatement

• An increase in the tolerable misstatement

• An increase in the acceptable risk of incorrect acceptance

  In estimating the population misstatement, the first step in projecting from the sample to the population is to:

  • revise the upper error bound.

  • make a point estimate.

  • determine the population mean.

  • calculate the precision interval.

    When the auditor uses tracing as an audit procedure for tests of transactions she is primarily concerned with which audit objective?

    • Completeness

    • Classification

    • Occurrence

    • Cutoff

      An example of a document the auditor receives from the client, but which was prepared by someone outside the client's organization, is a:

      • confirmation.

      • vendor invoice.

      • sales invoice.

      • bank reconciliation

        13

        When auditors wish to evaluate a sample statistically, an acceptable selection method is:

        • systematic sample selection.

        • judgmental selection.

        • block sample selection.

        • haphazard selection

          14

          The word below that best explains the relationship between required sample size and the acceptable risk of incorrect acceptance is:

          • inverse.

          • indeterminate.

          • proportional.

          • direct

            15

            If acceptable audit risk is increased, acceptable risk of incorrect acceptance should be:

            • reduced.

            • increased.

            • unaffected.

            • modified.16

              A sample in which the characteristics of the sample are the same as those of the population is a(n):

              • variables sample.

              • representative sample.

              • attributes sample.

              • random sample.

          .