Chapter 9

Using the same facts as in (k) above, what is the estimated total auditted value of the population using the difference method?

201,000

The auditors have sampled 50 accounts from a population of 1,000 accounts receivable. The sample items have a mean book value of 200 and a mean audited value of 203. the book value in the population is 198000. What is the estimated audited value of the population using the mean-per-unit method?

203,000

In assessing sampling risk, the risk of incorrect rejection and the risk assessing control risk too high relate to the :

Efficiency of the audit

To auditors primary objective in selecting a sample of items from an audit population is to obtain

a representative sample

Which of the following sampling techniques is typically used for tests of controls?

Attribute sampling

Which of the following statistical sampling techniques is least desirable for use by the audit

Block section

Which of the following is an element of sampling risk?

Concluding that no material misstatement exists in a materially misstated population.

The auditors are using unstratified mean-per-unit sampling to audit accounts receivable as they did in the prior year. Which of the following changes in characteristics or specifications would result in a larger required sample size this year than that required in the prior year?

Larger variance in the dollar value of accounts

An auditor needs to estimate the average highway weight of tractor-trailer trucks using a state's highway system. Which estimation method is more appropriate ?

Mean per unit

Discovery sampling is particularly effective when :

The auditors are looking for critical deviations that are not expected to be frequent in number

In which of the following circumstances is it least likely that tests of controls will be performed?

The expected deviation rate exceeds the tolerable deviation rate

Which of the following is accurate regarding tolerable misstatement?

Tolerable misstatement is directly related to materiality