Statistical Sampling Techniques Test

1. Which of the following steps is not related to the stage of planning the sample?

A. Determining the objectives of the test.

B. Identifying substantive test of details.

C. Defining what errors are being sought.

D. Determining the size of the sample.

Section 11.2 "Use of samples for audit tests". Identifying substantive test of details is not related to the stage of planning the sample.

2. The main difference between attribute sampling and variable sampling is that

A. the auditor estimates the error in terms of a quantity rather than an occurrence rate

B. the auditor estimates the error in terms of a quality rather than a sample rate

C. the auditor estimates the error in terms of a quantity rather than a sample rate

D. none of the above.

Section 11.3 "Statistical sampling techniques". The auditor estimates the error in terms of a quantity rather than an occurrence rate.

3. Another type of selection is called block selection. Which of the following statements is correct?

A. This is considered a method of audit sampling because most populations are structured so that items in a sequence can be expected to have similar characteristics.

B. This is not considered a method of audit sampling because most populations are not structured so that items in a sequence can be expected to have similar characteristics

C. This is not considered a method of audit sampling because most populations are structured so that items in a sequence can be expected to have similar characteristics

D. B and C are correct

Section 11.2 "Use of samples for audit tests". This is not considered a method of audit sampling because most populations are structured so that items in a sequence can be expected to have similar characteristics.

4. When using statistical sampling, the auditor may use the difference estimation method or a method that estimates the population mean called the

A. systematic method

B. haphazard method

C. random sample method

D. mean-per-unit method:

Section 11.2 "Use of samples for audit testing". When using statistical sampling, the auditor may use the difference estimation method or a method that estimates the population mean called the mean-per-unit method.

5. A formal non-statistical sampling plan uses which of the following approach to determine the sample size and evaluate sample results?

A. a structured approach

B. a systematic approach

C. a random approach

D. a haphazard approach

Section 11.4 "Non-statistical sampling techniques". A formal non-statistical sampling plan uses a structured approach to determine the sample size and evaluate sample results.

6. Which of the following statements is correct?

A. The risk of overreliance is the risk that the auditor will conclude, in the case of a test of control, that control risk is lower than it actually is.

B. The risk of overreliance is the risk that the auditor will conclude, in the case of a substantive test, that control risk is lower than it actually is.

C. The risk of overreliance is the risk that the auditor will conclude, in the case of a test of control, that control risk is higher than it actually is.

D. The risk of overreliance is the risk that the auditor will conclude, in the case of a substantive test, that control risk is higher than it actually is.

Section 11.1 "Basic concepts of sampling". The risk of overreliance is the risk that the auditor will conclude, in the case of a test of control, that control risk is lower than it actually is.

7. Which of the following statements is correct?

A. The risk of incorrect rejection is the risk that the auditor will conclude, in the case of a test of control, that a material error exists when in fact it does not.

B. The risk of incorrect rejection is the risk that the auditor will conclude, in the case

of a substantive test , that a material error does not exist when in fact it does.

C. The risk of incorrect rejection is the risk that the auditor will conclude, in the case

of a test of control, that a material error does not exist when in fact it does.

D. The risk of incorrect rejection is the risk that the auditor will conclude, in the case

of a substantive test , that a material error exists when in fact it does not.

Section 11.1 "Basic concepts of sampling". The risk of incorrect rejection is the risk that the auditor will conclude, in the case of a substantive test, that a material error exists when in fact it does not.

8. Which of the following statements is correct?

A. The sampling risk associated with audit effectiveness is of much greater concern to the auditor than the sampling risk associated with audit efficiency because it can lead to an inappropriate audit opinion.

B. The sampling risk associated with audit efficiency is of much greater concern to the auditor than the sampling risk associated with audit effectiveness because it can lead to an inappropriate audit opinion.

C. The sampling risk associated with audit effectiveness is of much greater concern to the auditor than the sampling risk associated with audit efficiency because it can lead to additional work.

D. None of the above statements are correct.