Chapter15final.docx

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1、Chapter15 finalCHAPTER 15 Multiple-Choice Questions 1. easy b 2. easy a 3. easy d 4. easy c 5. easy b 6. easy a 7. easy d A sample in which the characteristics of the sample are the same as those of the population is a(n): a. variables sample. b. representative sample. c. attributes sample. d. rando

2、m sample. When the auditor decides to select less than 100 percent of the population for testing, the auditor is said to use: a. audit sampling. b. representative sampling. c. poor judgment. d. none of the above. In practice, auditors _ know if a sample is truly a representative one. a. sometimes b.

3、 often c. routinely d. never To determine if a sample is truly representative, an auditor must: a. conduct multiple samples of the same population. b. never use sampling because of the expense involved. c. audit the entire population. d. perform none of the above. One of the ways to eliminate nonsam

4、pling risk is through: a. proper supervision and instruction of the clients employees. b. proper supervision and instruction of the audit team. c. the use of attributes sampling rather than variables sampling. d. controls which ensure that the sample drawn is random and representative. One cause of

5、nonsampling risk is: a. ineffective use of audit procedures. b. testing less than the entire population. c. use of extensive tests of controls. d. any of the above. An auditor can increase the likelihood that a sample is representative by using care in: a. designing the sampling process. b. designin

6、g the sample selection. c. evaluating the sample results. d. performing all of the above. 15-1 8. easy b 9. easy a 10. easy a 11. easy c 12. easy b 13. easy a 14. easy a 15. easy d When the auditor goes through a population and selects items for the sample without regard to their size, source, or ot

7、her distinguishing characteristics, it is called: a. block sample selection. b. haphazard selection. c. systematic sample selection. d. statistical selection. When auditors wish to evaluate a sample statistically, the only acceptable selection method is: a. probabilistic selection. b. judgmental sel

8、ection. c. haphazard selection. d. block sample selection. A sample in which every possible combination of items in the population has an equal chance of constituting the sample is a: a. random sample. b. statistical sample. c. judgment sample. d. representative sample. The process which requires th

9、e calculation of an interval and then selects the items based on the size of the interval is: a. statistical sampling. b. random sample selection. c. systematic sample selection. d. computerized sample selection. _ is the risk that audit tests will not uncover existing exceptions in a sample. a. Sam

10、pling risk. b. Nonsampling risk. c. Audit risk. d. Detection risk. _ is the risk that an auditor will reach an incorrect conclusion because a sample is not representative of the population. a. Sampling risk b. Nonsampling risk c. Audit risk d. Detection risk In systematic sample selection, the popul

11、ation size is divided by the number of sample items desired in order to determine the: a. sampling interval. b. tolerable exception rate. c. computed upper exceptions rate. d. mean. Sampling risk may be controlled by: a. adjusting the sample size. b. always using random sampling . c. using whatever

12、sample selection technique is appropriate for the population. d. both a and c. 15-2 16. easy b 17. easy d 18. easy c 19. easy a 20. easy c 21. easy d 22. easy c Which of the following occurrences would be least likely to attract the auditors attention? a. Deviations from clients established control

13、procedures. b. Deviations from clients budgeted values. c. Monetary errors in populations of transaction data. d. Monetary errors in populations of account balance details. Which of the following statements is correct? a. A sample of all items of a population will eliminate sampling risk, but increa

14、se nonsampling risk. b. The use of an appropriate sample selection technique ensures a representative sample. c. The auditors failure to recognize an exception is a significant cause of sampling risk. d. The use of inappropriate audit procedures is a significant cause of nonsampling risk. The risk w

15、hich the auditor is willing to take in accepting a control as being effective when the true population exception rate is greater than a tolerable rate is the: a. finite correction factor. b. tolerable exception rate. c. acceptable risk of assessing control risk too low. d. estimated population excep

16、tion rate. The exception rate the auditor will permit in the population and still be willing to reduce the assessed level of control risk is called the: a. tolerable exception rate. b. estimated population exception rate. c. acceptable risk of overreliance. d. sample exception rate. If the auditor d

17、ecides to assess control risk at the maximum level in a private company audit, tests of controls are: a. increased in number. b. reduced in number. c. not performed. d. unchanged from prior planned settings. Which of the following is not one of the basic phases in audit sampling? a. Planning the sam

18、ple b. Evaluating the results of the sample c. Selecting the sample and performing the tests d. Each of the above is a phase in audit sampling. Attributes sampling would be an appropriate method to use on which one of the following procedures in an audit program? a. Review sales transactions for lar

19、ge and unreasonable amounts. b. Observe whether the duties of the accounts receivable clerk are separate from handling cash. c. Examine a sample of duplicate sales invoices for credit approval by the credit manager. d. Review the aged schedule of accounts receivable to determine if receivables from

20、officers are included. 15-3 23. easy a 24. easy d 25. easy c 26. easy d 27. medium b 28. medium c 29. medium d When the computed upper exception rate is greater than the tolerable exception rate, it is necessary for the auditor to take specific action. Which of the following courses of action would

21、be most difficult to defend if the auditor is ever subject to review by a court? a. Reduce the tolerable exception rate so as to accept the sample results. b. Expand the sample size and perform more tests. c. Revise the assessed control risk. d. Write a letter to management which outlines the contro

22、l deficiencies. Which of the following is not generally considered in determining sample size for tests of controls? a. Expected population exception rate. b. Risk of assessing control risk too low. c. Tolerable exception rate. d. Population size. Which of the following statement is correct with res

23、pect to the quantification of sampling risk? a. Sampling risk cannot be quantified. b. Sampling risk can be quantified only when non-probabilistic selection techniques are used to select the sample. c. Sampling risk can be quantified only when probabilistic selection techniques are used to select th

24、e sample. d. None of the above. The auditor may use which of the following criteria when using the directed sample selection technique? a. Items most likely to contain misstatements. b. Items containing selected population characteristics. c. Large dollar coverage. d. Any of the above. Non-sampling

25、errors occur when audit tests do not uncover existing exceptions in the: a. population. b. sample. c. planning stage. d. financial statements. Which of the following statements is correct with respect to the evaluation of sample results? a. It is acceptable to make non-probabilistic evaluations only

26、 when probabilistic sample selection is used. b. It is acceptable to make non-probabilistic evaluations only if the auditor cannot quantify sampling risk. c. It is never acceptable to evaluate a non-probabilistic sample as if it were a statistical one. d. All of the above are correct. Which of the f

27、ollowing statements is a valid criticism of non-statistical sampling? a. Many audit tests, such as footing of journals, must be performed outside a statistical sampling context. b. The cost of performing random selection or testing often exceeds the benefits. c. Non-statistical sampling does not dif

28、fer substantially from statistical sampling methods. d. Conclusions may be drawn in more precise ways when using statistical sampling methods. 15-4 30. medium d 31. medium b 32. (Public) medium c 33. medium b 34. medium d 35. medium d 36. medium b Which of the following methods of sample selection i

29、s appropriately used when selecting a random sample? a. Use of random number tables. b. Use of computer generated random numbers. c. Auditors random selection of items. d. Both a and b, but not c. Correspondence is established between the random number table and the population by: a. identifying eac

30、h item in the population with a unique number. b. deciding the number of digits to use in the random number table and their association with the population numbering system. c. defining which digits the auditor uses in a column and the method of reading the table. d. selecting a random starting poin

31、t on the table. The acceptable risk of assessing control risk to low will normally be assessed at a _ level when auditing a public company. a. higher b. compensating c. lower d. nominal Which of the following statements is not correct? a. It is acceptable to pick a starting point on a random number

32、table by using a “blind stab” method. b. It is impossible to draw a six-digit random number from a table that is separated into columns of five digits. c. The only reason for selecting a random starting point on a random number table is to eliminate the predictability of the sample. d. When selectin

33、g a three-digit number from a table that is separated into columns of five digits, it is permissible to use the first three digits, the middle three digits, or the last three digits. Which of the following is not one of the types of computer tools used to generate random samples? a. Electronic sprea

34、dsheet programs. b. Random number generators. c. Generalized audit software. d. Random application search software. Auditors are concerned with which type of exceptions? a. Deviations from a clients established internal control processes. b. Monetary misstatements in transaction data. c. Monetary mi

35、sstatements in account balance details. d. Auditors are concerned with all of these exceptions. In using audit sampling for exception rates, the auditor is primarily interested in determining the _ the exception rate might be. a. lowest b. most c. average range in which d. none of the above 15-5 37.

36、 medium c 38. medium a 39. medium a 40. medium d 41. medium a 42. medium c The highest estimated exception rate in the population at a particular acceptable risk of assessing control risk too low is: a. the upper exception rate. b. estimated population exception rate. c. the computed upper exception

37、 rate. d. the tolerable exception rate. The advantage of systematic sample selection is that: a. it is easy to use. b. there is limited possibility of it being biased. c. it is unnecessary to determine if the population is arranged randomly. d. all three of the above. A statistical method used to es

38、timate the proportion of items in a population containing an attribute of interest is: a. attributes sampling. b. variables sampling. c. estimation sampling. d. population-proportional-to-size sampling. The exception rate that the auditor will permit in the population and still be willing to use the

39、 preliminary control risk assessment is called the: a. acceptable exception rate. b. estimated population exception rate. c. sample exception rate. d. tolerable exception rate. The auditors best estimate of the population exception rate is the: a. current years sample exception rate. b. tolerable ex

40、ception rate. c. prior years sample exception rate. d. computed upper exception rate. Place the following steps in their proper order: 1. Analyze exceptions 2. Select the sample 3. Define attributes and exception conditions 4. State the objectives of the audit test 5. Specify the tolerable exception

41、 rate a. 1,3,2,4,5. b. 4,3,1,2,5. c. 4,3,5,2,1. d. 1,2,3,4,5. If an auditor judgmentally selects a sample of one hundred items from a population and finds two exceptions, the auditor: a. can conclude that the sample exception rate is 2%. b. can conclude that the population exception rate is 2%. c. c

42、an calculate the highest exception rate expected in the population. d. cannot make any conclusions about either the sample or the population. 43. medium a 15-6 44. medium b 45. medium a 46. medium d 47. medium b 48. medium c 49. medium b 50. medium d 51. medium c _ represents the auditors measure of

43、 sampling risk. a. TER b. ARACR c. SER d. EPER For which of the following audit procedures is audit sampling not appropriate? a. Review sales transactions for large and unusual amounts. b. Examine a sample of duplicate sales invoices for credit approval. c. Compare the quantity on duplicate sales in

44、voices with the quantity on related shipping documents. d. Audit sampling is appropriate for each of the above procedures. Which of the following statements about the process of defining the population is not correct? a. The auditor can define the population to include the desired data. b. The audit

45、or may generalize only about that population that has been sampled. c. The population represents the body of data about which the auditor wishes to generalize. d. The auditor can randomly sample from any part of the population that she chooses. Which of the following is the exception rate that the a

46、uditor expects to find before testing? a. Sample exception rate. b. Estimated population exception rate. c. Computed exception rate. d. Tolerable exception rate. Which of the following is not determined until after a sample is tested and evaluated? a. Sample exception rate. b. Estimated population e

47、xception rate. c. Computed exception rate. d. Tolerable exception rate. The relationship of tolerable exception rate (TER) to sample size is: a. direct (larger TER = larger sample). b. inverse (larger TER = smaller sample). c. variable (sometimes larger, sometimes smaller). d. not determinable. Whic

48、h of the following must be set prior to testing a sample? a. Sample exception rate. b. Achieved upper precision limit. c. Computed exception rate. d. Tolerable exception rate. The relationship of acceptable risk of accessing control risk too low (ARACR) to sample size is: a. variable (sometimes larger, some