(Objectives 15-1, 15-2) The following questions concern sampling for attributes. Choose the best response.
a. An advantage of statistical sampling over nonstatistical sampling is that statistical sampling helps an auditor
(1) minimize the failure to detect errors and fraud.
(2) eliminate the risk of nonsampling errors.
(3) design more effective audit procedures.
(4) measure the sufficiency of the audit evidence by quantifying sampling risk.
b. Which of the following best illustrates the concept of sampling risk?
(1) The documents related to the chosen sample may not be available to the auditor for inspection.
(2) An auditor may fail to recognize errors in the documents from the sample.
(3) A randomly chosen sample may not be representative of the population as a whole for the characteristic of interest.
(4) An auditor may select audit procedures that are not appropriate to achieve the specific objective.
c. For which of the following tests would an auditor most likely use attribute sampling?
(1) Selecting accounts receivable for confirmation of account balances.
(2) Inspecting employee time cards for proper approval by supervisors.
(3) Making an independent estimate of the amount of a LIFO inventory.
(4) Examining invoices in support of the valuation of fixed asset additions.
Objective 15-1
Explain the concept of representative sampling.
Objective 15-2
Distinguish between statistical and nonstatistical sampling and between probabilistic and nonprobabilistic sample selection.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.