CHAPTER8

1.Thisinvolvestheapplicationoftheprocedurestolessthan100% oftheitemswithinan
accountbalanceorclassoftransactions.Thisenablestheauditortoobtainandevaluate
auditevidenceaboutsomecharacteristicsoftheselecteditemsinordertoform an
opinion aboutthe characteristics ofallitems supporting an accountbalance or
transactionclass.
a.Audittechniques
b.Selectivetesting
c.Auditsampling
d.Specificidentification
2.Auditsamplingforsubstantivetestsisappropriatewhen
a.Analyticalproceduresareused
b.Theauditorwantstoeliminatesamplingrisks
c.Apopulationcontainssmallnumberoflargevalueitems
d.Testsofdetailsareperformed
3.Auditsamplingfortestofcontrolisgenerallyappropriatewhen
a.Controlleavesevidenceofperformance
b.Controlleavesnoevidenceofperformance
c.100%ofthetransactionsistestedA
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d.Examiningspecifichighvalueitemsinthepopulation
4.Inasamplingapplication,thegroupofitemsaboutwhichtheauditorwantstoestimate
somecharacteristiciscalledthe
a.Population
c.Attributeofinterest
b.Sample
d.Samplingunit
5.Non-samplingerroroccurwhentheaudittestsdonotuncoverexistingexceptionsinthe
a.Population
b.Planningstage
c.Sample
d.Financialstatement
6.PSA530identifiestwogeneralapproachestoauditsampling.Theyare
a.Random &nonrandom
b.Statistical&nonstatistical
c.Precision&reliability
d.Riskandnonrisk
7.Therelationshipbetweensamplesizeandtheallowablesamplingrisksis
a.Direct
b.Inverse
c.Sampledeviationrate
d.Expecteddeviationrate
8.Principalmethodsofsamplingselectionincludeallofthefollowingexcept A
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a.Haphazard
b.Random number
c.Systematic
d.Statistical
9.Asampleinwhicheverypossiblecombinationofitemsinthepopulationhasachanceof
constitutingthesampleisa
a.Representativesample
b.Random sample
c.Statisticalsample
d.Judgmentsample
10.Theprocesswhichrequiresthecalculationofanintervalandthem selectstheitems
basedonthesizeoftheintervalis
a.Statisticalsampling
b.Systematicselection
c.Random selection
d.Computerizedselection
11.Amethodofsamplinginwhichalltheitemsinthepopulationaredividedintotwoor
moresub-populationis
a.Variablesampling
b.Stratifiedsampling
c.Attributesampling
d.DivisiblesamplingA
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12.Iftheauditorisconcernedthatapopulationmaycontainexceptions,thedetermination
ofasamplesizesufficienttoincludeatleastonesuchexceptionisacharacteristicof
a.Discoverysampling
b.Random sampling
c.Variablessampling
d.Peso-unitsampling
13.Whichofthefollowingstatisticalsamplingplansdoesnotuseafixedsamplesizefor
testsofcontrols?
a.PPSsampling
b.Value-weightedsampling
c.Sequentialsampling
d.Variablessampling
14.Valueweightedsamplingismostappropriatewhentheauditor
a.Anticipatesunderstatementerrors
b.Expectsnoerrors
c.Anticipateoverstatementerrors
d.Hasassessedcontrolriskathighlevel