Question 1

Sampling risk is defined as the risk that an inference drawn from a sample will be incorrect.

Accepted Answer

Sampling risk refers to the possibility that the results of a statistical analysis of a sample may not be generalizable to a larger population. This can occur due to various factors, including biased sampling methods or inadequate sample size. Therefore, there is a risk that any inference drawn from a sample may not accurately represent the true characteristics or behaviors of the population being studied.

Question 2

The population is a group of items in an account balance that the auditor wants to test.

Accepted Answer

This statement is true. The population refers to the entire group of items in an account balance that the auditor wants to test, such as all the accounts receivable balances in a company's financial statements.

Question 3

Non-statistical samples should be based on the same audit considerations as those used for statistical sampling.

Accepted Answer

Non-statistical samples should still be selected using appropriate audit considerations, such as considering the risk of misstatement and materiality of the account balance or transaction population. The same concepts apply for statistical and non-statistical sampling.

Question 4

When evaluating an MUS sample,if the auditor finds no misstatements in the sample,the misstatement projection is zero dollars,and the total estimated misstatement will equal the projected misstatement for items in lower-stratum.

Accepted Answer

When using Monetary Unit Sampling (MUS) and no misstatements are found in the sample, the misstatement projection for that sample is indeed zero dollars. However, the total estimated misstatement for the entire population also includes a consideration of sampling risk, not just the projected misstatement from lower strata. The total estimated misstatement is not solely based on findings from lower strata but is a comprehensive evaluation including all strata and the associated risks.

Question 5

Extracting data from the client's computer system is one of the tasks that can be performed by GAS.

Accepted Answer

GAS, or Google Apps Script, can be used to access and extract data from a client's computer system if the appropriate permissions have been granted. This can be done using various APIs and libraries available within GAS, such as the Drive Service or the Advanced Drive Service.

Question 6

Random sampling can be used to determine sample size or evaluate sampling results even if the auditor does not plan on using statistical sampling.

Accepted Answer

Random sampling can provide valuable information about the population being sampled, even if statistical sampling techniques are not being used. It can help determine if the sample is representative of the population, identify errors or irregularities, and provide insights that can assist in the audit process. Therefore, auditors may use random sampling for non-statistical purposes as well.

Question 7

Statistical sampling combines the theory of probability and statistical inference with audit judgment and experience.

Accepted Answer

Statistical sampling involves using probability theory and statistical inference to draw conclusions about a population based on a sample. However, audit judgment and experience are also used to select the appropriate sample and interpret the results.

Question 8

Attribute sampling for testing controls should only be done by the auditor at the end of the fiscal period under audit.

Accepted Answer

Attribute sampling for testing controls can be done at any point in time during the fiscal period under audit, as long as the sample is representative of the population being tested. However, it is generally more efficient to perform such testing closer to the end of the period, as it allows for a more complete assessment of control effectiveness for the entire period.

Question 9

Monetary unit sampling (MUS)sampling is designed to test whether there is an acceptable risk of account balance understatement.

Accepted Answer

The answer of Monetary unit sampling (MUS)sampling is designed to...

Question 10

The auditor's tolerable failure rate for attribute sampling is the point in which control failures support the planned assessment of audit risk.

Accepted Answer

The answer of The auditor's tolerable failure rate for attribute...

Question 11

Projected misstatements are developed by extrapolation from the misstatements in sample items to the population.

Accepted Answer

Projected misstatements are developed by extrapolating from the misstatements found in the sample items to the population. This is done to estimate the total amount of misstatement in the population.

Question 12

Sample size in a MUS sample is a function of risk of incorrect acceptance,tolerable misstatement,and expected misstatement.

Accepted Answer

The sample size in a MUS sample is determined by these factors to ensure that the risk of incorrect acceptance is controlled, the tolerable misstatement is not exceeded, and the expected misstatement is properly estimated.

Question 13

Monetary unit sampling (MUS)results in an efficient sample size and concentrates on the dollar value of the account balances.

Accepted Answer

Monetary unit sampling (MUS) is designed to select a sample that is representative of an account balance, but the sample size is determined by the dollar value of the account balance. Therefore, MUS results in an efficient sample size and concentrates on the dollar value of the account balances.

Question 14

The population for MUS is defined as the number of dollars in the population being tested.

Accepted Answer

The population for MUS is defined as the total number of individuals or units being tested, not the number of dollars.

Question 15

Tolerable misstatement is the maximum amount of misstatement the auditor can accept in the population without requiring an audit adjustment or a qualified audit opinion.

Accepted Answer

Tolerable misstatement is defined as the maximum amount of misstatement that can be considered acceptable by the auditor without materially affecting the fairness of the financial statements. If the misstatement exceeds the tolerable limit, the auditor must make an audit adjustment or issue a qualified audit opinion.

Question 16

Population items with zero balances have no chance of being selected using PPS sampling.

Accepted Answer

PPS sampling selects items with a probability proportional to their size or value. Items with zero balances have a size or value of zero, so their probability of being selected is also zero. Therefore, they have no chance of being selected using PPS sampling.

Question 17

An example of attribute testing involves obtaining evidence that the client has matched the vendor invoice details with a purchase order and receiving report before payment approval.

Accepted Answer

This is a correct example of attribute testing, as it tests whether the client is following proper purchasing controls before making payments to vendors.

Question 18

Either nonstatistical or statistical sampling is appropriate for substantive tests of details.

Accepted Answer

Both nonstatistical and statistical sampling can be appropriate methods for conducting substantive tests of details, depending on the circumstances of the examination. Nonstatistical sampling may be appropriate when the population being tested is small or highly homogeneous, while statistical sampling may be more appropriate when the population is larger and more diverse. Ultimately, the choice of sampling method should be based on professional judgment and should take into account factors such as the nature of the audit objective, the characteristics of the population being tested, and the risk of material misstatement.

Question 19

Population items with a zero balance have the same chance of being chosen as those with dollar balances when using MUS sampling.

Accepted Answer

The answer of Population items with a zero balance have...

Question 20

Evaluating statistical sample results is one of the tasks that can be performed by GAS.

Accepted Answer

GAS can perform statistical analysis on data, including evaluating sample results.

Quiz 8: Specialized Audit Tools: Sampling and Generalized Audit Software