A sample in which the characteristics of the sample are the same as those of the population is: A) an attributes sample. B) a variables sample. C) a representative sample. D) a random sample. 2) One of the causes of non-sampling error is: A) the use of inappropriate or ineffective audit procedures. B) the use of attributes sampling instead of variables sampling. C) failure to draw a random sample. D) failure to draw a representative sample. 3) How can non-sampling risk be eliminated? A) proper supervision and instruction of the client's employees B) controls which ensure that the sample drawn is random and representative C) the use of attributes sampling rather than variables sampling D) proper supervision and instruction of the audit team 4) Sampling risk (sampling error) is an inherent part of sampling which results from: A) testing less than the entire population. B) weaknesses in client's internal control system. C) inappropriate audit procedures. D) failure to recognise exceptions. 5) Non-sampling errors occur when audit tests do NOT uncover existing exceptions in the: A) planning stage. B) population. C) financial statements. D) sample. 6) One of the ways to reduce sampling risk is to: A) provide proper supervision and instruction of the audit team. B) carefully design the audit procedures to be used. C) use variables sampling rather than attributes sampling. D) use an appropriate method of selecting sample items from the population. 7) Which one of the following BEST illustrates the concept of sampling risk? A) The documents related to the chosen sample may not be available for inspection. B) An auditor may select audit procedures that are not appropriate to achieve the specific objective. C) A randomly chosen sample may not be representative of the population as a whole on the characteristics of interest. D) An auditor may fail to recognise errors in the documents examined for the chosen sample. 8) The risk which the auditor is willing to take in accepting a control as being effective when it is not is the: A) allowable risk of overreliance (ARO). B) tolerable deviation rate (TDR). C) estimated population deviation rate. D) sample deviation rate (SDR). 9) The deviation rate the auditor will permit in the population and still be willing to use the assessed level of control risk established during planning is called the: A) tolerable deviation rate (TDR). B) sample deviation rate (SDR). C) acceptable risk of overreliance (ARO). D) estimated population deviation rate. 10) What is the most important aspect of audit sampling? A) evaluating the results B) sample selection C) performing the audit procedures D) all of the above
UNIT 6 – Audit Sampling
1.A sample in which the characteristics in the sample are the same as those of the population is a (an)
a.random sample
b.variables sample
c.attributes sample
d.representative sample
2.Non-sampling errors occur when audit tests do not uncover existing exceptions in the
a.population
b. sample
c.planning stage
d.financial statements
3.One of the causes of non-sampling error
a.the use of inappropriate or ineffective audit procedures
b.failure to draw a random sample
c.failure to draw a representative sample
d.the use of attributes sampling instead of variables sampling
4.One if the ways to eliminate non-sampling risk is through
a.proper supervision and instruction of the client’s employees
b.proper supervision and instruction of the audit team
c.the use of attributes sampling rather than variables sampling
d.controls which ensure that the sample drawn is random and representative
5.Sampling risk (sampling error) is an inherent part of sampling that results from
a.inappropriate audit procedures
b.failure to recognize exceptions
c.testing less than the entire population
d.weaknesses in client’s internal control system
6.One of the ways to reduce sampling risk is to
a.use an appropriate method of selecting sample items from the population
b.carefully design the audit procedures to be used
c.provide proper supervision and instruction of the audit team
d.use variables sampling rather than attribute sampling
7.Which of the following statements is not correct?
a.it is acceptable for auditors to use statistical sampling methods
b.it is acceptable for auditors to use non-statistical sampling methods
c. the primary benefit of statistical sampling methods is the quantification of sampling risk
d.an advantage of using statistical sampling is that the cost/benefit ratio is always positive
8.The most common method used of performing statistical tests of transactions is
a.variables sampling
b.attribute sampling
c.judgment sampling
d.random selection of samples