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Ch07-Audit Planning-Assessment of Control Risk
Ch07-Audit Planning-Assessment of Control Risk
Procedures
MULTIPLE CHOICE
ANSWER: B
ANSWER: B
ANSWER: D
ANSWER: A
142
Chapter 9 Statistical Sampling for Testing Control Procedures 143
ANSWER: C
ANSWER: B
ANSWER: D
ANSWER: C
ANSWER: B
ANSWER: A
ANSWER: B
ANSWER: A
Chapter 9 Statistical Sampling for Testing Control Procedures 145
ANSWER: D
ANSWER: A
ANSWER: B
ANSWER: C
ANSWER: B
ANSWER: C
ANSWER: B
ANSWER: B
ANSWER: B
ANSWER: B
ANSWER: B
ANSWER: B
ANSWER: B
ANSWER: C
ANSWER: C
ANSWER: C
ANSWER: B
ANSWER: B
ANSWER: B
ANSWER: B
150 Chapter 9 Statistical Sampling for Testing Control Procedures
ANSWER: B
ANSWER: C
ANSWER: D
c. Decrease.
d. Change by 4%.
ANSWER: C
ANSWER: A
ANSWER: D
ANSWER: A
152 Chapter 9 Statistical Sampling for Testing Control Procedures
ANSWER: D
ANSWER: C
ANSWER: A
a. Variables sampling.
b. Attribute sampling.
c. Judgment sampling.
d. PPS sampling.
ANSWER: B
ANSWER: C
ANSWER: D
COMPLETION:
ANSWER: SUBJECTIVE
ANSWER: NARROWER
ANSWER: LOWER
ANSWER: BETA
ANSWER: PROBABILITY
ANSWER: HIGH
MATCHING:
A. Attribute sampling
B. Alpha risk
C. Discovery sampling
D. Beta risk
E. Expected occurrence rate
F. Precision
Chapter 9 Statistical Sampling for Testing Control Procedures 155
G. Discovery sampling
H. Sampling risk
I. Systematic sampling
J. Tolerable occurrence rate
K. Upper occurrence limit
L. Variables sampling
SOLUTION:
1. A
2. C
3. E
4. D
5. J
6. H
7. I
8. K
9. B
10. F
PROBLEM/ESSAY:
SOLUTION:
59. Sampling can assist the auditor in various ways during the
examination of documentary evidence for tests of internal
controls. Using a vouchering and vendor billing application
as an example, assume that you are interested in evaluating
internal controls relative to ordering goods, receiving
goods, and processing vendor invoices. Discuss how
attribute sampling might assist you in the following phases
of your tests of controls:
a. Determining the number of vouchers to test;
b. Selecting the vouchers for testing;
c. Evaluating the results of the voucher test;
d. Assessing audit risk associated with the
expenditure cycle.
SOLUTION:
Required:
a. Based on the pilot sample, calculate the expected
occurrence rate and the tolerable occurrence rate for
each attribute.
b. In determining sample size, Jones can select an
expected occurrence rate ranging from the low for
attribute number 2 to the high for attributes 3 and 4.
What impact will a low rate relative to a high rate
have on the calculated sample size?
c. What other factors must Jones consider before
determining the sample size?
c. Assuming that a sample of 100 payroll summary entries
produced the following calculated upper occurrence
limits, what impact will these limits have on
Jones substantive audit program?
Attribute 1: 7.0%
Attribute 2: 4.0%
Attribute 3: 12.0%
Attribute 4: 6.0%
SOLUTION: