SOLVED

Learning Objective 15-1 1) 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) random sample. 2) 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) estimation sampling. 3) To determine if a sample is truly representative of the population, an auditor would be required to: A) conduct multiple samples of the same population. B) never use sampling because of the expense involved. C) audit the entire population. D) use systematic sample selection. 4) One of the ways to eliminate nonsampling risk is through: A) proper supervision and instruction of the client’s 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. 5)Â Which one of the choices below is most correct regarding a cause of sampling risk? A) ineffective use of audit procedures B) testing less than the entire population C) use of extensive tests of controls D) the possibility that a properly-selected sample still may not be representative 6) An auditor can increase the likelihood that a sample is representative by using care in: A) Designing the sampling process Designing the sample selection Yes Yes B) Designing the sampling process Designing the sample selection No No C) Designing the sampling process Designing the sample selection Yes No D) Designing the sampling process Designing the sample selection No Yes 7)Â Which of the following is the risk that audit tests will not uncover existing exceptions in a sample? A) Sampling risk B) Nonsampling risk C) Audit risk D) Detection risk 8) Which of the following 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 9) Sampling risk may be controlled by: A) Adjusting the sample size Always using random sampling Yes Yes B) Adjusting the sample size Always using random sampling No No C) Adjusting the sample size Always using random sampling Yes No D) Adjusting the sample size Always using random sampling No Yes 10) Which of the following statements is most correct? A) A sample of all items of a population will eliminate sampling risk, but increase nonsampling risk. B) The use of an appropriate sample selection technique ensures a representative sample. C) The auditor’s 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. 11) Which of the following statements best expresses the impact that the performance of audit procedures has on statistical vs. nonstatistical sampling? A) Audit procedures on the sample item will vary as a result of using either statistical or nonstatistical sampling. B) The audit procedures will be the same for either statistical or nonstatistical sampling but they must be performed differently for each. C) Statistical sampling requires quantitative audit procedures, whereas nonstatistical sampling requires judgmental audit procedures. D) Audit procedures on the sample item will not vary as a result of using either statistical or nonstatistical sampling. 1