CPA Auditing and Attestation (AUD) : Sampling
Study concepts, example questions & explanations for CPA Auditing and Attestation (AUD)
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Example Questions
Example Question #61 :Cpa Auditing And Attestation (Aud)
“Non-sampling risk” is:
The sample size is too large
The sample size is too small
Errors caused that are unrelated to the sample
The auditor will choose an incorrect sample
Errors caused that are unrelated to the sample
Non-sampling risk is unrelated to the sample itself. Typically, a non-sampling risk would involve the misapplication of audit procedures. This would be unrelated to the sample
Example Question #1 :Sampling
In the case of sampling risk:
controls are less effective than they actually are
controls are more effective than they actually are
Both a and b
Neither a or b
Both a and b
Both a and b are correct. This risk could be that controls are more effective than they actually are causing oversampling or less than they actually are causing under-sampling.
Example Question #62 :Cpa Auditing And Attestation (Aud)
Stratification is defined as:
Increasing the amount of the sample size
Dividing a population into sub populations
Multiplying a population into alternate populations
Reducing the amount of the sample size
Dividing a population into sub populations
In the concept of stratification, populations are divided into subsets. A probability sample is drawn from each group.
Example Question #11 :Audit Sampling
For which of the following audit tests would an auditor most likely use attribute sampling?
Inspecting employee time cards for proper approval by supervisors
Selecting accounts receivable for confirmation of account balances
Making an independent estimate of the amount of a LIFO inventory
Examining invoices in support of the valuation of fixed asset additions
Inspecting employee time cards for proper approval by supervisors
Attribute sampling is used to test controls. Inspecting employee time cards for proper approval by supervisors is a test of controls. Controls often relate to authorization, validity, completeness, accuracy, classification, and proper period.
Example Question #12 :Audit Sampling
While performing a test of details during an audit, an auditor determined that the sample results supported the conclusion that the recorded account balance was materially misstated. It was in fact not materially misstated. This situation illustrates the risk of:
Incorrect acceptance
Incorrect rejection
Assessing control risk too high
Assessing control risk too low
Incorrect rejection
Erroneously concluding that an account balance is materially misstated is an example of incorrect rejection.
Example Question #13 :Audit Sampling
当各种da进行测试ta areas during an audit, the auditor should uniformly use the same sample selection procedures for each testing unit.
False, the auditor should assess the best way of sampling each data set
True, only when the client advises this
False, there is a set procedure for how to proceed by the AICPA
True, when it facilitates the audit
False, the auditor should assess the best way of sampling each data set
Each data set to be tested requires a customized well thought out sampling and testing approach that allows the auditor to examine testing areas properly.
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