GAGE COLLEGE

FA CU LT YOFB USINE SSAN DECONOMI CS

STANDARDINDIVIDUALASSIGNMENT TWO
Auditing II

Date:-08/04/2020
Total Weight:-20%
Date of submission: -30/04/2020

Name:-____________________________

Department:-_______________
IDNO:-________________ Section:-__________

Stream:-Regular Extension

Program: DEGREE

GENERAL INSTRUCTIONS

 This is the first assignment to this course

 This assignment is to be completed and submitted to the dean office on time up on the
schedule by hard or soft copy.
 Create interdependence and build individual responsibility and accountability.
 Use your comprehension to complete the assignment.
 Explain your idea briefly and clearly, neatness is expected.
 You can refer your note book and different supporting resources.
 Devote your time and submit the assignment
 Submission after deadline is not tolerable

Be Good-looking! Be Smart! Be Elegant! But, Protect Yourself From Covid-19

Virus!
Instruction: Answer the following questions accordingly.
1. Briefly explain why auditors utilize audit sampling.
2. Discuss what meant by sampling risk. And list all types of sampling risk.
3. Discuss causes of non-sampling risk. Also explain ways the auditors can control non sampling
risk.
4. Describe the difference between statistical and non-statistical sampling in terms of the
sampling selection used and quantification sampling risk.
5. Explain and give an example for sample selection methods commonly associated with
statistical audit sampling.
6. Identify the relation between sample size and the accuracy of audit opinion.
7. State some classes of transactions that comprise the sale and collection cycle.
8. List and explain cash management techniques briefly.
9. What are the goals of cash management? Give short and precise explanation.
10. Discuss the possible irregularities involved in cash transaction that seriously need audit.
11. Write down general cash transaction related audit objectives. And explain each in detail.
12. What are the primary motive of conducting test of control and substantive test? Explain them
one by one.
13. Explain internal control over cash transaction.
14. What are the advantages and disadvantages of statistical and nom statistical audit sampling
respectively?
15. What are the major elements internal control over marketable securities?