QUESTIONS ON SAMPLING (WHITTINGTON BOOK)

9A–6. A monetary unit sample with a sampling interval of $2,000 includes an item with an
audited value of $90. This value was $30 lower than the account’s book value. Calculate the
tainting percentage for this account. 30/120 = 25%
Projected misstatement = 25% * 2000 = $500

9A–8. In a monetary unit sample with a sampling interval of $20,000, an auditor discovered
that a selected account receivable with a recorded amount of $10,000 had an audit amount
of $2,000. Calculate the projected misstatement for this one item. T.F = 8000/10000 = 80%
P.M = 80% * 20000 = 16000

a. Which of the following is an element of sampling risk?

(1) Choosing an audit procedure that is inconsistent with the audit objective.

(2) Concluding that no material misstatement exists in a materially misstated population

based on taking a sample that includes no misstatement.

(3) Failing to detect an error on a document that has been inspected by an auditor.

(4) Failing to perform audit procedures that are required by the sampling plan.

b. In assessing sampling risk, the risk of incorrect rejection and the risk of assessing control

risk too high relate to the:

(1) Efficiency of the audit.

(2) Effectiveness of the audit.

(3) Selection of the sample.

(4) Audit quality controls.

 QUESTIONS ON SAMPLING (WHITTINGTON BOOK)
c. Which of the following statistical sampling techniques is least desirable for use by the

auditors?

(1) Random number table selection.

(2) Block selection.

(3) Systematic selection.

(4) Random number generator selection.

d. The auditors’ primary objective in selecting a sample of items from an audit population is

to obtain:

(1) A random sample.

(2) A stratified sample.

(3) A representative sample.

(4) A large sample.

g. What effect on sample size does increasing the allowable risk of incorrect acceptance have

for a substantive test?

(1) Decrease.

(2) Increase.

(3) Indeterminate.

(4) No effect.
 QUESTIONS ON SAMPLING (WHITTINGTON BOOK)
h. Which of the following is accurate regarding tolerable misstatement?

(1) Tolerable misstatement is directly related to materiality.

(2) Tolerable misstatement cannot be determined until the sample results are evaluated.

(3) Tolerable misstatement does not affect sample size.

(4) Tolerable misstatement is a measure of reliability of the sample.

I. In which of the following circumstances is it least likely that tests of controls will be

performed?

(1) The expected deviation rate exceeds the tolerable deviation rate.

(2) The planned assessed level of control risk is at a level slightly below the maximum.

(3) The risk of assessing control risk too low is less than the expected deviation rate.

(4) The tolerable deviation rate exceeds the risk of assessing control risk too low.

j. In attributes sampling, what effect does a decrease in the tolerable deviation rate have on

sample size?

(1) Decrease.

(2) Increase.

(3) Indeterminate.

(4) No effect.
 QUESTIONS ON SAMPLING (WHITTINGTON BOOK)
k. In attributes sampling, what effect does an increase in the acceptable risk of assessing

control risk too low have on sample size?

(1) Decrease.

(2) Increase.

(3) Indeterminate

(4) No effect.

l. This year the audit plan, as compared to the prior year, includes a lower risk of assessing
control risk too low. Other factors held constant, which of the following is most

likely to be correct relating to the planned risk of incorrect acceptance for substantive

procedures?

(1) Lower than prior year.

(2) Same as prior year.

(3) Higher than prior year.

(4) Indeterminate as there is no certain relationship between the acceptable levels of the

risks.