siddharth
22-02-09, 05:37 PM
Hi,
Very poor response. ok let me do my duty
1. Which of the following does not constitute sampling?
a. Select all payments made during the year greater than $ 10,000 and ensure they have supporting documentation.
b. Select 50 purchase orders from all purchases made during the year using a random number table.
c. Randomly pick a number of asserts from the fixed assets register to inspect to ensure existence
d. Select every tenth payment made during the year from the cash payments journal.
2. An advantage of using statistical sampling techniques is that such techniques is that such techniques
a. Mathematically measure risk
b. Eliminate the need for judgmental decisions.
c. Define the values of tolerable error and risk of incorrect acceptance required to provide audit satisfaction
d. Have been established in the courts to be superior to judgmental sampling.
3. What would most effectively describe the risk of incorrect rejection in terms of substantive audit testing?
a. The auditor has ascertained that the balance is materially correct when in actual fact it is not.
b. The auditor has rejected an item from his or her sample andlater found the item was materially incorrect.
c. The auditor concludes that the balance is materially misstated when in actual fact it is not.
d. The auditor decides to perform a predominantly compliance based audit due to an evaluation that the controls were effective within the company. Midway through the audit, the auditor realizes the controls are not good, and decides to expand substantive testing.
4. An advantage in using statistical sampling over non sampling methods in tests of control is that statistical methods
a. Eliminate the need of use judgment in determining appropriate sample sizes.
b. Can more easily convert the sample into a dual purpose test useful for substantive testing
c. Provide an objective basis for quantitatively evaluating sample risks.
d. Afford greater assurance than a non statistical sample of equal size.
Very poor response. ok let me do my duty
1. Which of the following does not constitute sampling?
a. Select all payments made during the year greater than $ 10,000 and ensure they have supporting documentation.
b. Select 50 purchase orders from all purchases made during the year using a random number table.
c. Randomly pick a number of asserts from the fixed assets register to inspect to ensure existence
d. Select every tenth payment made during the year from the cash payments journal.
2. An advantage of using statistical sampling techniques is that such techniques is that such techniques
a. Mathematically measure risk
b. Eliminate the need for judgmental decisions.
c. Define the values of tolerable error and risk of incorrect acceptance required to provide audit satisfaction
d. Have been established in the courts to be superior to judgmental sampling.
3. What would most effectively describe the risk of incorrect rejection in terms of substantive audit testing?
a. The auditor has ascertained that the balance is materially correct when in actual fact it is not.
b. The auditor has rejected an item from his or her sample andlater found the item was materially incorrect.
c. The auditor concludes that the balance is materially misstated when in actual fact it is not.
d. The auditor decides to perform a predominantly compliance based audit due to an evaluation that the controls were effective within the company. Midway through the audit, the auditor realizes the controls are not good, and decides to expand substantive testing.
4. An advantage in using statistical sampling over non sampling methods in tests of control is that statistical methods
a. Eliminate the need of use judgment in determining appropriate sample sizes.
b. Can more easily convert the sample into a dual purpose test useful for substantive testing
c. Provide an objective basis for quantitatively evaluating sample risks.
d. Afford greater assurance than a non statistical sample of equal size.