Audit Module E,F,G (Exam 3)

In a probability-proportional-to-size (PPS) sample with a sampling interval of $10,000, an auditor discovered that a selected account receivable with a recorded amount of $12,000 had an audited amount of $11,000. If this were the only misstatement discovered by the auditor, the projected misstatement of this sample would be Multiple Choice a. $1,000 b. $833 c. $960 d. $10,000

a. $1,000

An auditor performs attribute sampling to test for proper cancellation of payment vouchers. In a sample population of 100, two vouchers are missing the proper cancellation, while one simply cannot be located. The error rate of the sample is Multiple Choice a. 3% b. 2% c. Cannot be determined without knowing standard deviation. d. 4%

a. 3%

If the recorded amount of the sample item is $1,000, the audited value is $600, and the sampling interval is $5,000, the projected misstatement would be: Multiple Choice a. $3,000 b. $2,000 c. $1,000 d. $400

b. $2,000

In a probability-proportional-to-size sample with a sampling interval of $5,000, an auditor discovered that a selected account receivable with a recorded amount of $3,000 had an audit amount of $2,700. If this were the only error discovered by the auditor, the projected error of this sample would be Multiple Choice a. $2,300 b. $500 c. $300 d. $800

b. $500

Assume that the audit team established a tolerable rate of deviation of 5%, an expected population deviation rate of 1%, and desired to control the risk of overreliance to 5%. What is the appropriate sample size in this situation? Multiple Choice a. 77 items. b. 93 items. c. 132 items. d. 124 items.

b. 93 items.

Brown, CPA, was using monetary unit sampling to audit an inventory of $3,000,000 that was comprised of 6,000 items. A sample size of 500 was determined and a tolerable misstatement of $20,000 was established. The sampling interval would be: Multiple Choice a. $500. b. $5,000. c. $6,000. d. $20,000.

c. $6,000

A limitation of systematic random selection is that this method Multiple Choice a. Can result in bypassing a number of items having similar characteristics. b. Has a relatively low likelihood of yielding a representative sample. c. Cannot be used with statistical sampling plans. d. Results in a larger sample size than other selection methods.

a. Can result in bypassing a number of items having similar characteristics.

Which of the following is not correct with respect to sample size? Multiple Choice a. In a statistical sampling application, the determination of sample size is used to control the auditor's exposure to nonsampling risk. b. As the desired level of sampling risk decreases, the necessary sample size decreases. c. Auditors determine sample size after defining the characteristic of interest and the population of interest. d. As the expected misstatement (or expected rate of deviation) increases, the necessary sample size increases.

a. In a statistical sampling application, the determination of sample size is used to control the auditor's exposure to nonsampling risk.

An auditor discovers that an account balance believed to be materially misstated based on an audit sample was not materially misstated based on the total population of the account balance. This is an example of which of the following sampling types of risks? Multiple Choice a. Incorrect rejection. b. Incorrect acceptance. c. Assessing control risk too low. d. Assessing control risk too high.

a. Incorrect rejection.

For which of the following audit tests would an auditor most likely use attributes sampling? Multiple Choice a. Inspecting purchase orders for proper approval by supervisors. b. Making an independent estimate of recorded payroll expense. c. Determining that all payables are recorded at year end. d. Selecting accounts receivable for confirmation of account balances.

a. Inspecting purchase orders for proper approval by supervisors.

In which of the following situations would the use of sampling be most appropriate? Multiple Choice a. The need for precise information is less important. b. The number of items comprising the population is smaller. c. The likelihood of selecting a representative sample is relatively low. d. The use of sampling would be appropriate in all of these situations.

a. The need for precise information is less important.

Which of the following is considered to be an advantage of monetary unit sampling compared to classical variables sampling? Selection of larger component; Ability to identify understatements Multiple Choice a. Yes; No b. No; No c. No; Yes d. Yes; Yes

a. Yes; No

While performing an audit of accounts receivable, Allen, CPA, found that the sample results supported the conclusion that the accounts receivable balance was materially misstated. However, the balance was, in fact, not materially misstated. This situation illustrates the risk of: Multiple Choice a. incorrect rejection. b. incorrect acceptance. c. Overreliance. d. Underreliance.

a. incorrect rejection

The purpose of tests of controls is to determine that: Multiple Choice a. internal control policies and procedures are functioning as prescribed. b. the extent of further audit procedures can be reduced. c. errors and irregularities are prevented or detected in a timely manner. d. the auditor has an understanding of internal control.

a. internal control policies and procedures are functioning as prescribed. (内部統制のポリシーと手順が規定通りに機能している)

When conducting variables sampling, auditors typically examine Multiple Choice a. transactions of components of the account balance or class of transactions. b. the balances in an account balance or class of transactions from one or more prior years. c. the separation of duties among client personnel for transactions related to the account balance or class of transactions. d. minutes from meetings of the client's board of directors.

a. transactions of components of the account balance or class of transactions.

In performing variables sampling, the auditor will conclude that the account balance is not materially misstated if the ____ is less than or equal to ____. Multiple Choice a. upper limit on misstatement; tolerable misstatement. b. expected error; tolerable misstatement. c. tolerable misstatement; upper limit on misstatement. d. tolerable misstatement; expected error.

a. upper limit on misstatement; tolerable misstatement.

Which of the following steps involved with determining the upper limit on misstatements is ordinarily performed earliest? Multiple Choice a. Multiply the sampling interval by the tainting percentage. b. Determine the audited value of the item and compare it to the recorded balance. c. Calculate the basic allowance for sampling risk. d. Calculate the incremental allowance for sampling risk.

b. Determine the audited value of the item and compare it to the recorded balance.

Which of the following sampling activities is not performed during the planning stage of the audit? Multiple Choice a. Define the population. b. Determine the sample size. c. Determine the objective of sampling. d. Define the characteristic of interest.

b. Determine the sample size.

The risks of incorrect acceptance in variables sampling and of overreliance in attributes sampling both relate to Multiple Choice a. Efficiency of an audit. b. Effectiveness of an audit. c. Control risk assessment decisions. d. Evidence about assertions in financial statements.

b. Effectiveness of an audit.

Which of the following most closely represents an unrestricted random selection procedure? Multiple Choice a. Identifying a starting point within the population and bypassing a fixed number of items. b. Matching items in the population to a series of randomly selected numbers. c. Randomly selecting invoices to customers whose last names start with "W". d. Randomly picking items from an accounts receivable file.

b. Matching items in the population to a series of randomly selected numbers.

The interpretation of the ULRD in an attributes sampling application is Multiple Choice a. The estimated rate of deviation in the population with certainty that the actual rate of deviation is lower. b. The estimated rate of deviation in the population with probability equal to the risk of overreliance that the population deviation rate is higher. c. The estimated rate of deviation in the population with certainty that the actual rate of deviation is higher. d. The estimated rate of deviation in the population with probability equal to the risk of overreliance that the actual rate of deviation is lower.

b. The estimated rate of deviation in the population with probability equal to the risk of overreliance that the population deviation rate is higher.

Which of the following characteristics most likely would be an advantage of using probability-proportional-to-size (PPS) sampling rather than classical variables sampling? Multiple Choice a. The selection of negative balances requires no special design considerations. b. The sampling process can begin before the complete population is available. c. It is particularly effective for detecting understatements. d. The sample size can generally be lower even if many errors are expected.

b. The sampling process can begin before the complete population is available.

Why is defining the population so important in a sampling application? Multiple Choice a. To permit the auditor to select the appropriate type of substantive procedure. b. To ensure that the results appropriately represent the entire population. c. To reduce sampling risk to the appropriate level. d. To allow the auditor to appropriately measure sample items.

b. To ensure that the results appropriately represent the entire population.

Which of the following factors has a direct relationship with sample size in a variables sampling application? Multiple Choice a. Tolerable misstatement: Yes; Expected misstatement: Yes b. Tolerable misstatement: No; Expected misstatement: Yes c. Tolerable misstatement: Yes; Expected misstatement: No d. Tolerable misstatement: No; Expected misstatement: No

b. Tolerable misstatement: No; Expected misstatement: Yes

The ultimate purpose of control risk assessment is to: Multiple Choice a. estimate the overall risk of failing to detect material misstatements. b. decide the nature, timing, and extent of further audit procedures. c. determine the risk of incorrect acceptance. d. determine the probability that errors entered the accounts.

b. decide the nature, timing, and extent of further audit procedures.

Jones, CPA, used a classical variables sampling application to examine the inventory balance of XYZ Company. The recorded balance of the inventory was $240,000, and Jones determined a tolerable misstatement of $12,000. Jones' sampling procedures resulted in a precision interval of $224,000 to $236,000. As a result, Jones should conclude that the Multiple Choice a. inventory balance is fairly stated. b. inventory balance is materially misstated. c. tolerable misstatement should be increased. d. risk of incorrect acceptance is below the desired level.

b. inventory balance is materially misstated.

All of the following are correct regarding variables sampling, except: Multiple Choice a. variables sampling is used to examine a population when auditors want to estimate the amount (or value) of some characteristic of that population. b. the risk of incorrect rejection is of more concern to auditors than the risk of incorrect acceptance. c. auditors can use either statistical or nonstatistical sampling approaches to variables sampling. d. to determine if an account balance is fairly stated, auditors compare the adjusted sample estimate of the misstatement to the tolerable misstatement.

b. the risk of incorrect rejection is of more concern to auditors than the risk of incorrect acceptance.

In performing attributes sampling, the auditor will conclude that the control is functioning as intended if the ______ is less than or equal to ______. Multiple Choice a. expected population deviation rate; tolerable rate of deviation b. upper limit rate of deviation; tolerable rate of deviation c. tolerable rate of deviation; expected population deviation rate d. tolerable rate of deviation; upper limit rate of deviation

b. upper limit rate of deviation; tolerable rate of deviation

Assume that an account with a recorded balance of $5,000 has an audited value of $3,000. By using monetary unit sampling, if the sampling interval is $1,500, the projected misstatement would be Multiple Choice a. $600. b. $900. c. $2,000. d. $3,000.

c. $2,000.

Jeter, CPA, performed a nonstatistical sampling plan to examine the inventory balances of Big Apple Company and estimated the account balance based on the ratio of audited value to recorded balances. He audited 200 items from a sample and found an audited value of $36,000. The sample had a recorded balance of $40,000. If the entire inventory contained 3,000 items and the total recorded balance of the inventory was $500,000, the estimated account balance using nonstatistical estimation and projecting the error based on number of items examined is: Multiple Choice a. $393,600. b. $474,500. c. $450,000. d. $540,000.

c. $450,000.

An audit team designed a sample that would provide a 10 percent risk of overreliance that not more than 7 percent of sales invoices lacked credit approval. From previous audits, the audit team expected that 3 percent of the sample invoices lacked proper approval. From the sample of 90 invoices, 7 were found to lack credit approval. Using AICPA sample evaluation tables. Based on the above information, the audit team determined that the allowance for sampling risk was Multiple Choice a. 7.8 percent. b. 2.2 percent. c. 5.0 percent. d. 10.0 percent.

c. 5.0 percent.

Rome, CPA, is examining the internal control of Smack, Inc. Rome has established a risk of overreliance of 10%, an expected population deviation rate of 1%, and a tolerable rate of deviation of 5%. Use AICPA Sample Size tables.What is the appropriate sample size that would be examined by Rome? Multiple Choice a. 46 b. 38 c. 77 d. 93

c. 77

Which of the following factors would not result in a reduced sample size in monetary unit sampling? Multiple Choice a. An increase in the risk of incorrect acceptance from 5 percent to 10 percent. b. A decrease in the expected misstatement from $5,000 to $3,000. c. A decrease in the tolerable misstatement from $15,000 to $10,000. d. A decrease in the recorded balance from $200,000 to $185,000.

c. A decrease in the tolerable misstatement from $15,000 to $10,000.

Summitt, CPA, performed a nonstatistical sampling plan to examine the inventory balances of Hero Inc. Which of the following methods of sample selection are available to her? Multiple Choice a. Random and systematic only. b. Block and haphazard only. c. Any method she believes will result in a representative sample. d. Any method where the results can be probabilistically estimated.

c. Any method she believes will result in a representative sample.

Which of the following components of the audit risk model is most closely associated with attributes sampling? Multiple Choice a. Detection risk. b. Inherent risk. c. Control risk. d. Audit risk.

c. Control risk

For which of the following audit tests would an auditor most likely use variables sampling? Multiple Choice a. Inspecting purchase orders for proper approval by supervisors. b. Confirming proof of cancellation for a sample of payment vouchers associated with cash disbursements. c. Determining that all payables are recorded at year end. d. Confirming that monthly reconciliations of key balance sheet accounts were conducted.

c. Determining that all payables are recorded at year end.

Which of the following steps in the sampling process is ordinarily performed last? Multiple Choice a. Determine the objective of sampling. b. Measure sample items. c. Evaluate the sample results. d. Define the characteristic of interest.

c. Evaluate the sample results.

Samantha, CPA, decided to stratify the population in her statistical sampling plan. Which of the following is the most likely reason she used this approach? Multiple Choice a. It eliminates the need for random selection. b. The population is relatively homogenous in terms of the dollar amount of components or transactions. c. It reduces her expected sample size. d. It eliminates the need for calculating the projected misstatement in the account being examined.

c. It reduces her expected sample size.

In which of the following situations would the auditor be more likely to use monetary unit sampling as opposed to classical variables sampling? Multiple Choice a. Larger expected misstatement: Yes; Concern with overstatements: Yes b. Larger expected misstatement: Yes; Concern with overstatements: No c. Larger expected misstatement: No; Concern with overstatements: Yes d. Larger expected misstatement: No; Concern with overstatements: No

c. Larger expected misstatement: No; Concern with overstatements: Yes

Nonsampling risk normally occurs during which step of the sampling process? Multiple Choice a. Defining the population. b. Selecting sample items. c. Measuring sample items. d. Evaluating sample results.

c. Measuring sample items.

If an audit team examined 100 transactions and found one deviation from an important control procedure, the audit conclusion could be that control risk can be assessed at the associated control risk level when Multiple Choice a. The tolerable rate of deviation is 3 percent. b. The tolerable rate of deviation is 2 percent. c. More information about decision criteria is available. d. The tolerable rate of deviation is 4 percent.

c. More information about decision criteria is available.

An auditor established a $100,000 tolerable misstatement for an asset with an account balance of $7,500,000. The auditor selected a sample of every fiftieth item from the population that represented the asset account balance and discovered overstatements of $2,200 and understatements of $300. Under these circumstances, the auditor most likely would conclude that Multiple Choice a. There is an unacceptably high risk that the actual misstatements in the population exceed the tolerable misstatement because the total projected misstatement is more than the tolerable misstatement. b. There is an unacceptably high risk that the tolerable misstatement exceeds the sum of actual overstatements and understatements. c. The asset account is fairly stated because the total projected misstatement is less than the tolerable misstatement. d. The asset account is fairly stated because the tolerable misstatement is less than the net of projected actual overstatements and understatements.

c. The asset account is fairly stated because the total projected misstatement is less than the tolerable misstatement.

The audit team is planning to examine a sample of control policies and procedures. Assume that, based on the intended degree of reliance on internal control, the audit team wishes to control the risk of overreliance to 5% and establishes a tolerable deviation rate of 8%. Based on past audits, the audit team would normally estimate the expected population deviation rate at 2%; however, because of improvements in the client's internal control, they now feel that a rate of 1.25% is appropriate. Which of the following is not true with respect to the impact of the reduction in the expected population deviation rate on sample size? Multiple Choice a. The reduction in the expected population deviation rate would result in a smaller sample size. b. The audit team would likely need to have a reasonable justification for establishing a lower expected population deviation rate. c. The resultant sample size assuming the reduction in the expected population deviation rate would be 77 items. d. The reduction in the expected population deviation rate would result in the audit team examining 19 fewer items.

c. The resultant sample size assuming the reduction in the expected population deviation rate would be 77 items.

When evaluating results of testing a sample using attribute sampling, the auditor considers the sample's final error rate to be equal to Multiple Choice a. Errors in the sample / total elements in the sample. b. (Errors in the sample + missing elements in the sample) / total elements in the sample. c. [(Errors in the sample + missing elements in the sample) / total elements in the sample] + allowance for sampling risk c. ([(Errors in the sample + missing elements in the sample) / total elements in the sample] + allowance for sampling risk) × proportion of sample to population

c. [(Errors in the sample + missing elements in the sample) / total elements in the sample] + allowance for sampling risk

In the study of internal control, the auditor uses sampling to compare the ______________ to the ______________. Multiple Choice a. adjusted estimate of misstatement; overall materiality. b. sampling risk; precision. c. adjusted estimate of the deviation rate; tolerable rate of deviation. d. precision interval; upper limit on misstatement.

c. adjusted estimate of the deviation rate; tolerable rate of deviation.

As the expected misstatement is large relative to the tolerable misstatement, the audit team would most likely Multiple Choice a. increase their degree of reliance on internal controls. b. consider the possibility of an increased level of tolerable misstatement. c. increase the sample size. d. decrease the sample size.

c. increase the sample size.

When an auditor increases the assessed level of control risk because certain control procedures were determined to be ineffective, the auditor would most likely increase the: Multiple Choice a. extent of tests of controls. b. level of detection risk. c. level of inherent risk.

c. level of inherent risk.

While selecting a sample of sales invoices for a test of internal controls, the auditor was unable to locate one invoice and classified this invoice as non-deviation. This is an example of Multiple Choice a. sampling risk. b. incorrect acceptance. c. nonsampling risk. d. deviation risk.

c. nonsampling risk.

In classical variables sampling, a measure of the variability of the population is known as the Multiple Choice a. sampling average. b. tolerable misstatement. c. standard deviation. d. tainting percentage.

c. standard deviation.

Which of the following statements are ordinarily not correct about the sample size in statistical sampling when testing controls? Multiple Choice a. There is an inverse relationship between the amount of tolerable deviation rate and sample size. b. There is a direct relationship between the expected deviation rate and the sample size. c. There is an inverse relationship between the amount of acceptable risk of assessing the deviation rate too low and sample size. d. A larger population requires a proportionately larger sample size.

d. A larger population requires a proportionately larger sample size.

Which of the following is not considered in establishing the sample size in a monetary unit sampling application? Multiple Choice a. Expected misstatement. b. Population size. c. Risk of incorrect acceptance. d. All of these are considered.

d. All of these are considered.

While performing an audit of accounts payable, Clayton, CPA, is using variables sampling to determine the audited value of the account based on selected purchase orders. Which of the following options is most likely to reduce the necessary sample size? Multiple Choice a. A decrease in the level of tolerable misstatement. b. An increase in the expected level of misstatement. c. An increase in the variability of the size of accounts payable transactions. d. An increase in the necessary risk of incorrect acceptance.

d. An increase in the necessary risk of incorrect acceptance.

How does the auditor typically determine the appropriate level of the risk of incorrect rejection when using classical variables sampling? Multiple Choice a. Based on prior assessments of audit risk, risk of material misstatement, and analytical procedures risk. b. Based on the recorded amount of the account balance as well as the relationship of the account balance with important financial statement subtotals. c. Based on the findings in prior audits or based on a small sample taken during the current year. d. Based on the anticipated cost of conducting additional substantive procedures.

d. Based on the anticipated cost of conducting additional substantive procedures.

Which of the following steps in attributes sampling is most closely related to identifying key controls corresponding to the relevant management assertions? Multiple Choice a. Define the population. b. Determine the sample size. c. Define the deviation condition. d. Determine the objective of sampling.

d. Determine the objective of sampling.

Jerry Tim is examining an important internal control in the audit of Langly Company. In past audits, deviations from this control have been observed at a minimal rate (less than 0.1 percent); however, because the account balance affected by this control is highly susceptible to fraud, it is important that Tim obtain a high level of assurance that deviations occur at no higher than a predetermined (low) rate. Which of the following sampling methods would Tim most likely use to evaluate this control? Multiple Choice a. Statistical sampling. b. Sequential sampling. c. Attributes sampling. d. Discovery sampling.

d. Discovery sampling.

What is an auditor's evaluation of a statistical sample for attributes when a test of 150 documents results in 8 deviations if tolerable rate is 6%, the expected population deviation rate is 4%, and the allowance for sampling risk is 1%? Multiple Choice a. Modify the planned assessed level of control risk because the tolerable rate plus the allowance for sampling risk exceeds the expected population deviation rate. b. Accept the sample results as support for the planned assessed level of control risk because the sample deviation rate plus the allowance for sampling risk exceeds the tolerable rate. c. Accept the sample results as support for the planned assessed level of control risk because the tolerable rate less the allowance for sampling risk equals the expected population deviation rate. d. Modify the planned assessed level of control risk because the sample deviation rate plus the allowance for sampling risk exceeds the tolerable rate.

d. Modify the planned assessed level of control risk because the sample deviation rate plus the allowance for sampling risk exceeds the tolerable rate.

Which of the following is not an advantage of statistical sampling? Multiple Choice a. Statistical sampling provides auditors with a sufficient sample size that controls exposure to sampling risk. b. Statistical sampling uses selection methods that expose all items in the population to selection. c. Statistical sampling evaluates the sample evidence in such a manner that controls exposure to sampling risk. d. Statistical sampling deploys audit procedures that allow auditors to more effectively evaluate evidence.

d. Statistical sampling deploys audit procedures that allow auditors to more effectively evaluate evidence.

Which of the following courses of action would an audit team most likely follow in planning a sample of cash disbursements if the audit team is aware of several unusually large cash disbursements? Multiple Choice a. Increase the sample size to reduce the effect of the unusually large disbursements. b. Continue to draw new samples until all unusually large disbursements appear in the sample. c. Set the tolerable deviation rate at a lower level than originally planned. d. Stratify the cash disbursements population so that the unusually large disbursements are selected.

d. Stratify the cash disbursements population so that the unusually large disbursements are selected.

Which of the following is found by dividing the amount of misstatement noted in a logical unit by the recorded amount of that logical unit? Multiple Choice a. Sample size. b. Sampling interval. c. Projected misstatement. d. Tainting percentage.

d. Tainting percentage.

Which of the following is the least likely outcome when the upper limit on misstatement exceeds the tolerable misstatement? Multiple Choice a. The auditor would be exposed to the risk of incorrect rejection. b. The auditor would be exposed to an efficiency loss. c. The auditor would consider expanding the sample to evaluate additional transactions or components of the account balance. d. The auditor would conclude that the account balance is fairly stated.

d. The auditor would conclude that the account balance is fairly stated.

Which of the following is the least likely outcome when the upper limit on misstatements exceeds the tolerable misstatement? Multiple Choice a. The auditor would be exposed to the risk of incorrect rejection. b. The auditor would be exposed to an efficiency loss. c. The auditor would consider expanding the sample to evaluate additional transactions or components of the account balance. d. The auditor would conclude that the account balance is fairly stated.

d. The auditor would conclude that the account balance is fairly stated.

Auditors are evaluating an account with a recorded balance of $600,000 using classical variables sampling. Based on an allowable risk of incorrect acceptance of 5 percent, the auditors have determined the following: Estimated account balance = $680,000 Precision = $20,000 Tolerable misstatement = $50,000 Which of the following best describes the auditors' decision and rationale for that decision? Multiple Choice a. The auditors would accept the account balance as fairly stated, since the sample estimate falls outside of the precision interval. b. The auditors would conclude that the account balance is not fairly stated, since the sample estimate falls outside of the precision interval. c. The auditors would accept the account balance as fairly stated, since the difference between the lower bound of the precision interval and recorded balance exceeds the tolerable misstatement. d. The auditors would conclude that the account balance is not fairly stated, since the difference between the lower bound of the precision interval and recorded balance exceeds the tolerable misstatement.

d. The auditors would conclude that the account balance is not fairly stated, since the difference between the lower bound of the precision interval and recorded balance exceeds the tolerable misstatement.

Why is the auditor more concerned with controlling the exposure to the risk of incorrect acceptance than with the risk of incorrect rejection? Multiple Choice a. Only the risk of incorrect acceptance results in an incorrect decision by the auditor. b. The risk of incorrect rejection is not related to the auditor's substantive procedures. c. The risk of incorrect rejection can be controlled by performing substantive procedures during the interim period. d. The risk of incorrect acceptance may ultimately result in the auditor incorrectly issuing an unmodified opinion on the client's financial statements.

d. The risk of incorrect acceptance may ultimately result in the auditor incorrectly issuing an unmodified opinion on the client's financial statements.

Which of the following statements is not true regarding variables sampling? Multiple Choice a. Two approaches to variables sampling are monetary unit sampling and classical variables sampling. b. Both statistical and nonstatistical approaches to variables sampling can be used under GAAS. c. The objective of variables sampling is to estimate either the true balance or the extent of misstatement in an account balance or class of transactions. d. Variables sampling is appropriate when the distribution of the population is binary in nature.

d. Variables sampling is appropriate when the distribution of the population is binary in nature.

The upper limit rate of deviation in attributes sampling is: Multiple Choice a. the actual deviation rate in the population. b. always less than the tolerable rate of deviation. c. always greater than the tolerable rate of deviation. d. a statistical calculation that considers sampling risk.

d. a statistical calculation that considers sampling risk.

The type of sampling most frequently used by the auditors during their substantive procedures is referred to as: Multiple Choice a. account balance sampling. b. attributes sampling. c. item sampling. d. variables sampling.

d. variables sampling.