Question

a. Attributes Sampling nonstatistical Stratificatio Samplin Allowanc e for sampling ri signed & liquid assets h safe Company compensatio n balance deposit box 11. Inherent in the use of sampling is risk which is the possibility of selecting a sample that is not representative of the population 12. When the auditors estimated sampling risk using professional judgement rather than by using the laws of probability, they are said to be using sampling 13. The term _refers to the process of dividing a population into relatively homogeneous subgroups. 14. Test of controls typically use plans 15. Adding and subtracting the to and from the projected misstatement creates an interval within which the true value of the population is likely to le 16. Checks in payment of a company's payables should be prepared by one person and by another 17. If a client's financial investments are maintained in a should be under the joint control of two or more officials 18. Financial investments should be registered in the name of the 19. The count of securities on hand by the auditors should be made concurrently with the count of other

Answer 1

Answers from 11 - 20  

11) c. Sampling

12) e. Non-statistical

13) b. Stratification

14) a. Attributes sampling

15) d. Allowance for sampling risk

16) i. Signed

17) h. Safe deposit box

18) j. Company

19) g. Liquid assets

20) f. Compensation balance

Answers from 21 - 30

21) f. Credit department

22) e. Bill of lading

23) a. Collection agency

24) g. Billing department

25) b. Aged trial balance

26) h. Shipping documents

27) j. Positive

28) i. Assume balance is correct

29) d. Collections

30) c. Related party receivables