Quiz 8
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An auditor has set the risk of assessing control risk too low at 10%,
the tolerable deviation rate at 7%, and expected deviation rate at 32
0.0%. What is the recommended sample size for this application?
For attributes sampling, of the three factors that enter into sample
size determination, which two factors may the auditor adjust to Tolerable deviation rate and overreliance risk.
reflect the importance of the control?
Audit sampling is not used for which type of audit evidence. Inquiry
An advantage of statistical sampling over nonstatistical sampling
Measure the sufficiency of the evidential matter obtained.
is that statistical sampling helps an auditor to
To determine whether the internal controls operated effectively to
minimize instances of failure to invoice a shipment, the auditor
Bill of lading
would select a sample of transactions from the population repre-
sented by the
Assume the risk of assessing control risk too low is 5% and the
tolerable deviation rate is 5%. the auditor selects a sample of 60
7.7
items and finds 1 deviation. What is the computed upper deviation
rate?
Increase TDR will __________________ sample size Decrease
For which of the following audit tests would an auditor most likely Inspecting employee time cards for proper approval by supervi-
use attributes sampling? sors.
Samples to test internal controls are intended to provide a basis
The controls are operating effectively
for an auditor to conclude whether
To determine whether the internal controls operated effectively
to minimize instances of failure to post invoices to customers'
Sales invoice
accounts receivable master file, the auditor would select a sample
of transactions from the population represented by the
Assume that the risk of assessing control risk too low is 5%, the
tolerable deviation rate is 6%, and the auditor finds two errors in a 6.2
sample of 100 items. What is the computed upper deviation rate?
An auditor has set the risk of assessing control risk too low at 5%,
the tolerable deviation rate at 5%, and expected deviation rate at 124
1.5%. What is the recommended sample size for this application?
An auditor performing a test of controls expects zero errors in
the population being tested and desires to achieve 5% risk of
assessing control risk too low. They determine that the minimum 7%
acceptable sample size for this application in 42. What is the
tolerable deviation rate for this sampling application?
In which of the following cases is the computed upper deviation X10 percent sampling risk, sample of 120 items, 3 deviations
rate the lowest? found.
An auditor has set the risk of assessing control risk too low at 5%,
the tolerable deviation rate at 7%, and expected deviation rate at 66
0.5%. What is the recommended sample size for this application?
Increase EPDR will _______________ sample size Increase
Which of the following combinations results in the greatest de- Decrease in desired confidence level, Increase in tolerable devi-
crease in sample size in an attribute sample for a test of controls? ation rate, and Decrease in expected pouplation devation rate.
Audit sampling is commonly used for which type of audit evi-
Reperformance
dence?
An auditor set the tolerable deviation rate at 10 percent for a
statistical sampling application. In which of the following situations
5 percent sampling risk, sample of 80 items, 4 deviations found.
would the auditor conclude that internal controls are not function-
ing properly?
Which of the following statements is correct concerning statistical There is an inverse relationship between the tolerable deviation
sampling in tests of controls? rate and the sample size.
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