SOLVED

Learning Objective 15-2 1) Which of the following is not true for nonstatistical sampling? A) applies mathematical rules that allows auditors to quantify sampling risk B) auditors select items for the sample that they believe would provide them the most information C) reach conclusion about the population on a judgmental sample D) often called judgmental sampling 2) When the auditor goes through a population and selects items using nonprobalistic selection methods, without regard to their size, source, or other distinguishing characteristics, it is called: A) block sample selection. B) haphazard selection. C) systematic sample selection. D) statistical selection. 3) When auditors wish to evaluate a sample statistically, an acceptable selection method is: A) systematic sample selection. B) judgmental selection. C) haphazard selection. D) block sample selection. 4) Which of the following statement is most correct with concerning 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 the sample. D) None of the above. 5) 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. 6) Which of the following statements is most correct with respect to the evaluation of non-probabilistic sample results? A) It is acceptable to make non-probabilistic evaluations only 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 using statistical methods. D) All of the above are correct. 7) Which of the following 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 differ substantially from statistical sampling methods. D) Conclusions may be drawn in more precise ways when using statistical sampling methods. 8) Which of the following statements is not correct regarding probabilistic and non-probabilistic sample selection? A) In probabilistic selection, every population item has a known chance of being selected. B) It is not acceptable to make non-probabilistic evaluations using probabilistic selection. C) Probabilistic selection is required for all statistical sampling methods. D) Both methods are acceptable and commonly used. 9) Non-probabilistic selection methods are not based on mathematical probabilities; therefore: A) the extent to which a sample is representative of the population may be difficult to determine. B) they are discouraged by the AICPA. C) they are not allowed by the Statements on Auditing Standards. D) they are not as effective as statistical sampling. 10) Which of the following statements regarding block sampling is least likely to be true? A) Block sampling is the selection of several items in sequence. B) It is acceptable to use block sampling for tests of transactions only if a reasonable number of blocks is used. C) Only one block should be selected to increase the probability of a representative sample. D) Once the first item in the block is selected, the remainder of the block is chosen automatically.