AUD - CPA Exam - Audit Sampling Exam
Questions with Correct Verified Answers,
Already Passed! (Complete & Accurate)
Which of the following best illustrates the concept of sampling risk?
A) A randomly chosen sample may not be representative of the
population as a whole on the characteristic of interest.
B) An auditor may select audit procedures that are not appropriate to
achieve the specific objective.
C) An auditor may fail to recognize errors in the documents examined
for the chosen sample.
D) The documents related to the chosen sample may not be available
for inspection. - ANS ✓A) A randomly chosen sample may not be
representative of the population as a whole on the characteristic of
interest.
In estimation sampling for variables, which of the following must be
known in order to estimate the appropriate sample size required to
meet the auditor's needs in a given situation?
A) The qualitative aspects of errors.
B) The total dollar amount of the population.
C) The acceptable level of risk.
CPA Exam - Audit Sampling
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D) The estimated rate of error in the population. - ANS ✓C) The
acceptable level of risk.
In performing tests of controls, the auditor will normally find that
A) The level of risk is directly proportionate to the rate of error.
B) The rate of deviations in the sample exceeds the rate of error in the
accounting records.
C) The rate of error in the sample exceeds the rate of deviations.
D) All unexamined items result in errors in the accounting records. -
ANS ✓B) The rate of deviations in the sample exceeds the rate of error in
the accounting records.
The objective of the allowance for sampling risk in sampling for tests
of controls on internal control is to
A) Determine the probability of the auditor's conclusion based upon
reliance factors.
B) Determine that financial statements taken as a whole are not
materially in error.
C) Estimate the risk of incorrect acceptance of substantive tests.
D) Estimate the range of procedural deviations in the population. -
ANS ✓D) Estimate the range of procedural deviations in the population.
Which of the following characteristics most likely would be an
advantage of using classical variables sampling rather than
probability-proportional-to-size (PPS) sampling?
CPA Exam - Audit Sampling
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A) The selection of negative balances requires no special design
considerations.
B) The sampling process can begin before the complete population is
available.
C) The auditor need not consider the preliminary judgments about
materiality.
D) The sample will result in a smaller sample size if few errors are
expected. - ANS ✓A) The selection of negative balances requires no special
design considerations.
At times a sample may indicate that the auditor's planned assessed
level of control risk is reasonable when, in fact, the true compliance
rate does not justify such reliance. This situation illustrates the risk of
A) Assessing control risk too low.
B) Assessing control risk too high.
C) Incorrect precision.
D) Incorrect rejection - ANS ✓A) Assessing control risk too low.
Which of the following statements is correct concerning probability-
proportional-to-size (PPS) sampling, also known as dollar unit
sampling?
A) The sampling distribution should approximate the normal
distribution.
B) Overstated units have a lower probability of sample selection than
units that are understated.
C) The auditor controls the risk of incorrect acceptance by specifying
that risk level for the sampling plan.
CPA Exam - Audit Sampling
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