AUDIT SAMPLING

• 16) Sampling risk results from the auditor's failure to

recognize exceptions in transaction data.
• A) True
• B) False
• Answer: B
• Terms: Sampling risk
• Diff: Easy
• Objective: LO 15-1
• AACSB: Reflective thinking skills
• 17) Even when nonsampling risk is zero, there is always a
possibility that a sample is not representative of the population.
• A) True
• B) False
• Answer: A
• Terms: Nonsampling risk
• Diff: Easy
• Objective: LO 15-1
• AACSB: Reflective thinking skills
•  
• 18) If a particular internal control is not followed by the client exactly
6% of the time, and the auditor's tests of that control find three
control violations in a sample of 50, the sample is considered to be
representative.
• A) True
• B) False
• Answer: A
• Terms: Sample considered to be representative
• Diff: Moderate
• Objective: LO 15-1
• AACSB: Reflective thinking skills
•