One might anticipate additional questions dealing with concepts such as sampling risk, nonsampling risk, tolerable misstatement 1 , and the projection of sample results to an overall population. The Audit multiple choice questions count for 50% of your total score. Question 37. Multiple Choice. c) One person Companies. This preview shows page 1 - 2 out of 2 pages. CHAPTER 9 AUDIT SAMPLING: AN APPLICATION TO SUBSTANTIVE TESTS OF ACCOUNT BALANCES Answers to Review Questions Answers to Multiple-Choice Questions 9-11 D 9-16 B 9-12 D 9-17 A 9-13 B 9-18 A 9-14 A 9-19 C 9-15 C 9-20 C Solutions to Problems 9-21 a. Auditing - Final ... Give it a try and choose the right answer according to you for each question. Exam 10 November 2013, questions Exam 2011 Audit Exam 31 October 2017, questions and answers Exam June 2019, questions OMGT1053 - group assignment Week 2 Case Study - year 2020 As a ... An auditor uses audit sampling to perform tests of controls in the acquisition and payment cycle. Subject matter includes the definiton of auditing, the concept of materiality, evidence, substantive tests, audit documentation, internal control, reasonable assurance, information technology, personal computers, attribute sampling application, and deviation. Once you have answered the questions, click on 'Submit Answers for Grading' to get your results. Cash disbursement documents are approved by at least two responsible management officials. The SIM section counts for the other 50%. Answer : Be professional at all times. Download Audit Sampling Multiple Choice Questions And Answers Pdf: FileName. Also read: Auditing MCQs (Multiple Choice Questions and Answers) 9. d) Audit judgments. Caro 2016 is applicable to the: a) Banking Companies. The controler of Excello Manufacturing, Inc., wants to use analytical procedures to identify the possible existence of idle equipment or the possibility that equipment has been disposed of without having been written off. 8. 5558. ... C A sampling method in which the auditor selects a … In using statistical sampling, the CPA's best course of action is to, An auditor uses audit sampling to perform tests of controls in the acquisition and payment cycle. Attribute sampling and Question 5 For sampling, which ONE of the following should be up-to-date, complete and affordable? CARO 2016 is applicable to the following private companies: a) Not a holding or subsidiary of a public company. Audit and Assurance “Final Audit” Quiz Sampling Techniques Multiple Choice Questions and Answers for competitive exams. QUESTIONS AND ANSWERS Auditing Homework Help, Online Auditing Assignment & Project Help Distinguish between: a) Attribute sampling and variable sampling b) Sampling risk and non sampling risk c) Alpha risk and beta risk. b) Insurance Companies. This activity contains 23 questions. California State University, Fullerton • ACCT 422, Chapt 10 Audit Evidence and Working Papers MC Solutions, Chapt 13 Conducting Assurance Engagement MC Solutions, Chapt 12 Intro to Engagement Process MC Solutions, American University in Cairo • UNKNOWN 204. Various types of quality audits are: A) product B) process C) management (system) D) registration (certification 300+ TOP AUDITING Objective Questions and Answers MCQs A) tolerable misstatement B) acceptable risk of incorrect rejection C) estimate of misstatements in the population D) acceptable audit risk Q 13 If an auditor concludes that internal controls are likely to be effective, the preliminary assessment of control risk can be reduced, leading to which of the following impacts on the acceptable risk of incorrect acceptance? (b) does not occur if an auditor relies on unreliable evidence. d) Internal auditor. Speed. Block coding methods, 4B/5B, 8B/10B, and 8B/6T choice Based Questions and Answers 6. Review of prenumbered purchase orders to detect unrecorded trade-ins, Approval of periodic depreciation entries by a supervisor independent of the accounting department, Checks issued in payment of acquisitions of equipment are not signed by the controller, All acquisitions of factory equipment are required to be made by the department in need of the equipment, Factory equipment replacements are generaly made when estimated usefullives, as indicated in depreiation schedules, have expired, Proceeds from sales of fully depreciated equipment are credited to other income, Continuous analysis of miscellaneous revenue to locate any cash proceeds from sale of plant assets, Periodic inquiry of plant executives by internal auditors as to whether any plant assets have been retired, Continuous use of serially numbered retirement work orders, Periodic observation of plant assets by the inernal auditors, Prior year accounts payable to current year accounts payable, Prior year payroll expense to budgeted current year payroll expense, Current year revenue to budgeted current year revenue, Current year warranty expense to current year contingent liabilities, Depreciation expense/book value of manufacturing equipment, Accumulated depreciation/book value of manufacturing equipment, Repairs and maintenance cost/direct labor costs, Gross manufacturing equpment cost/units produced, Removing question excerpt is a premium feature. Multiple choice questions Try the following questions to test your knowledge of this chapter. QUESTION FOUR. Sample Practice Questions, Answers, and Explanations 211 16. Increase the sample size to lessen the effet of the unusually large balances. In auditing accounts payable, an auditor's procedures most likely will focus primarily on management's assertion of, When using confirmations to provide evidence about the completeness assertion for accounts payable, the appropriate population most likely is, Which of the following controls most likely will justify a reduced assessed level of control risk concerning plant and equipment acquisitions, With respect to an internal control measure that wil ensure accountability for fixed asset retirements, management should implement controls that include. 9. What are management assertions and what is the importance to the auditor? Audit undertaken by employees of the organization to check financial irregularities. Avoid being judgmental. An internal auditor using nonstatistical sampling must, however, select a sample that is thought to be representative of the population, taking into, consideration the factors that affect sample size. This activity contains 19 questions. Give it a try and choose the right answer according to you for each question. 1. The final exams for the Audit class are just around the corner and the quiz below is designed to help you pass the quiz by getting rid of the cold feet you may be having. Which of the following is an internal control that will prevent paid cash disbursement documents from being presented for payment a second time? Quiz: Which Anime Character Are You Most Like? Explain the purpose of the audit to the auditees. The accounting department reports that the balance of accounts receivable is $210,000.You are willing to accept that balance if audit sampling suggests it is within $15,000 of the actual balance.Using a classical variables sampling plan,you compute a 95% confidence interval of $208,000 to $225,000.You would therefore A) Not be able to determine the acceptability of the receivable balance. The Audit CPA Exam is the longest and arguably most challenging section of the CPA exam. Chapter 15: Audit Sampling for Tests of Controls and Substantive Tests of Transactions What is audit sampling; Distinguish between audit risk and sampling risk; What conditions are necessary to carry out sampling? Those tests indicate that the related controls are operating effectively. Which Straw Hat Pirate Are You Actually? Gkseries provide you the detailed solutions on Auditing as per exam pattern, to help you in day to day learning. Examining unusual relationships between monthly accounts payable balances and recorded cash payments, Reconciling vendors' statements to the file of receiving reports to identify items received just prior to the balance sheet date, Reviewing cash disbursements recorded subsequent to the balance sheet date to determine whether the related payables apply to the prior period, Investigating payables recorded just prior to and just subsequent to the balance sheet date to determine whether they are supported by receiving reports, Vendors with whom the entity has previously done business, Amounts recorded in the accounts payable subsidiary ledger, Payees of checks drawn in th emonth after year-end, Invoices filed in the entity's open invoice file, Periodic physical inspection of plant and equipment by the internal audit staff. The independent auditor of 1900 differs from the auditor … Audit Sampling Multiple Choice Questions And Answers Pdf | updated. Express a qualified opinion due to inability of the client company to continue as a going concern, Evaluate management's performance in causing this decline, Consider the possibility of a misstatement in the financial statements, Increase the balance in the allowance for bad debt account, A decrease in accounts receivable relative to sales in 2009, Internal control surrounding accounts receivable is considered to be effective, A large number of small balances are involved, The auditor has reason to believe the persons receiving the requests are likely to give them consideration, Individual account balances are relatively large, Accuracy of the aging of accounts receivable, Accuracy of the allowance for uncollectible accounts, Test a sample of sales tranactions, selecting the sample from prenumbered shipping documents, Test a sample of sales tranactions, selecting the sample from sales invoices recorded in the sales journal, Reduce as much as possible the degree of variability in the overall population, Give every element in the population an equal chance of being included in the sample, Allow the person selecting the sample to use personal judgnment in deciding which elements should be included in the sample, Allow the auditor to emphasize larger items from the population, Recomputing net wage and salary payments to employees, Tracing hours woked from the payroll summary back to the individual time cards, Confirming accounts recivable for residential customers at a large electric utility, Review supporting documentation for additions to plant and equipment, Eliminate any unusually large balances that appear in the sample, Continue to draw new samples until no unusually large balances appear in the sample, Stratify the accounts receivable population so that the unusually large balances are reviewed separately. Course Hero is not sponsored or endorsed by any college or university. (c) applies only to samples taken for the purposes of control testing. Attenuation, distortion, and noise Questions and Answers 10. 20 Auditing Multiple Choice Questions - BrainMass. QUESTION ONE. Chapt 11 Audit Sampling MC Solutions - Chapter 11 Multiple-choice Questions 1 A is the best answer The primary benefit of statistical sampling is that, 1 out of 1 people found this document helpful, is the best answer. Questions and Answers 1. A number of factors influence the sample size for a substantive test of details of an account balance. 12720. Revision Test – 30 x 2-mark items drawn at random from the question bank. The advantages of MUS over classical variables sampling are as follows: • MUS sampling is generally easier to use than is classical variables sampling. Nyquist theorem Answers. 9702 kb/s. Answer questions or discuss compliance problems brought to your attention by auditees. What Techniques Used During An Audit? c. poor judgment. CPA EXAM MULTIPLE CHOICE QUESTIONS - Introduction to Auditing 1. These short objective type questions with answers are very important for Board exams as well as competitive exams. A secondary benefit, of statistical sampling, because it requires random sampling, is that it provides greater, assurance than nonstatistical sampling that the internal auditor will obtain a sample that is. Audit sampling has been tested on most recent auditing examinations, usually in the form of multiple-choice questions. In defining the sampling unit for the current year's audit, the auditor will most likely choose, When evaluating the adequay of the allowance for uncollectible accounts, an auditor recviews the entity's aging of receivables to support management's balance-related assertion of, Mr. Murray decides to use stratified sampling. Multiple choice questions Try the following questions to test your knowledge of this chapter. d) None of the above. Which of the following audit procedures will best uncover an understatement of sales and accounts receivables? Which of the following is not an internal control deficiency related to factory equipment? The reason for using stratified sampling rather than unrestricted random sampling is to, In an audit of financial statements, a CPA wil generally find stratified sampling techniques to be most applicable to, From prior experience, a CPA is aware that the accounts receivable trial balance contains a few unusually large balances. See correct answer (c). c) Acts to be performed. Budd arranged for hardware to be delivered by manufacturers to the retail store on a COD basis, thereby enabling his relative to buy at Lake's wholesale prices. 2. Answer: D. 7.8 Non-sampling risk: (a) occurs only if you test every member of the population. A client erroneously recorded a large purchse twice. Multiple Choice Questions and Answers on Sampling Theory and Pulse Modulation Multiple Choice Questions and Answers By Sasmita December 24, 2017 1) A periodic signal is 1. Chapter 5: Multiple choice questions. 10. Audit sampling is the primary subject of this combination of a quiz and worksheet. The auditor should: After a CPA has determined that accounts receivable have increased as a result of slow collections in a "tight money" environment, the CPA will be likely to, In connection with the review of key ratios, the CPA notes that Pyzi had accounts receivable equal to 30 days' sales at December 31, 2008, and to 4 days' sales at December 31, 2009. Comparison of current-year plant and equipment account balances with prior-year balances. Assuming that there have been no changes in economic conditions, clientele, or sales mix, this change most likely will indicate, The negative form of accounts receivable confirmation request is useful except when, The return of a positive confirmation of accounts receivable without an exception attests to the, In confirming a client's accounts receivable in prior years, an auditor found that there were many differences between the recorded accounts balances and the confirmation responses. ANSWER: RISK-DRIVEN 53. PCM (pulse code modulation),sampling, quantizing, and line coding multiple choice 7. Audit Sampling Multiple Choice Questions And Answers Pdf [Most popular] 7380 kb/s. Which of the following ratios will best accomplish this objective? The AUD exam is 4 hours long and is split evenly between Task based simulations and multiple choice questions. Greater reliance on analytical procedures, Smaller measure of tolerable misstatement, The same as the ARACR for test of controls, Greater than the ARACR for tests of controls, Less than the ARACR for tests of controls, Totally independent from the ARACR used for test of controls, Reconciling vendors' monthly statements with subsidiary payable ledger accounts, Tracing totals from the purchses journal to the ledger accounts, Sending written quarterly confirmations to all vendors, The date on cash disbursement documents must be within a few dys of the date that the document is presented for payment, The official signing the check compares with the documents and should deface the documents, Unsigned checks are prepared by individuals who are responsible for signing checks. As a result of analytical procedures, the auditor determines that the gross profit percentage has declined from 30% in the preceding year to 20% in the current year. An audit charter should: be dynamic and change often to coincide with the changing nature of technology and the audit profession. Questions and Answers 5. Instructions. Budd was probably able to accomplish this because of Lake's poor internal control over. b) A CAPI machine. These tests give you extra revision practice in multiple choice questions, but note that these type of stand-alone questions do not appear in the AA exam any more. The primary benefit of statistical sampling is that it allows the internal, auditor to quantify, measure, and control sampling risk. Sampling risk is the risk that the, internal auditor’s conclusion based on sample testing may be different than the conclusion, reached if the audit procedure were applied to all items in the population. representative of the population. Shannon capacity Answers. The , in addition to the permanent file, is an effective means for familiarizing members of the audit team with the nature of the client's business and for highlighting those areas presenting the highest audit risk. Multiple Choice Questions and answers Audit MCQs are arranged to help you in assessing your basic concepts and to prepare for any audit test. c. Audit budgets. Which of the following comparisons will be most useful to an auditor in aduting an entity's income and expense accounts? AUDITING Multiple Choice Questions :- 1. The auditor's acceptable risk of incorrect acceptance (ARIA) for the test of details of balances for accounts payable will most likely be, Which of the following sample planning factors will influence the sample size for a test of details of balances for a specific account?EXPECTED AMOUNT                          MEASURE OFOF MISSTATEMENTS                         TOLERABLE MISSTATEMENT. This content was COPIED from BrainMass.com ... 38 When the auditor decides to select less than 100 percent of the population for testing, the auditor is said to be using a. audit sampling. Please use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to each multiple choice question. All other things being equal, which of the following would lead to a larger sample size? Chapter 11 Multiple-choice Questions 1. These differences, which were not misstatements, required substantial time to resolve. An audit approach that allocates proportionately more audit resources to areas of high audit risk is referred to as a audit. b) Audit principles. These short solved questions or quizzes are provided by Gkseries. Information Technology Audit MCQ contain set of 10 Information Technology Audit MCQ questions with answers which will help you to clear beginner level quiz. Budd, the purchasing agent of Lake Hardware Wholesalers, has a relative who owns a retail hardware store. AA Chapter 8 Questions – The Stages of an Audit – After Appointment AA Chapter 9 Questions – Audit Risk AA Chapter 10 Questions – Audit Evidence AA Chapter 11 Questions – Audit Sampling AA Chapter 12 Questions – Internal Control AA Chapter 13 Questions – Accounting Systems AA Chapter 14 Questions – Computer System Controls Auditing standards differ from auditing procedures in that procedures relate to a) Measure of performance. The solution contains 20 Mutiple choice questions with correct answers. An internal auditor must obtain competent. A is the best answer. evidence regardless of whether he or she uses statistical or nonstatistical sampling. Auditing: 50 multiple choice audit questions. PSA 530 defines audit sampling as, the application of _______ to less than 100% of the items within a population of audit relevance such that all sampling units have a chance of selection in order to provide auditor with a reasonable basis on which to draw conclusions about the entire population. Sampling risk is the risk that the internal auditor’s conclusion based on sample testing may be different than the conclusion reached if the audit procedure were applied to all items in the population. The solution contains 20 Mutiple choice questions with correct answers. The auditor plans to use audit sampling to perform tests of details of balances for accounts payable. Add Remove. The primary benefit of statistical sampling is that it allows the internal auditor to quantify, measure, and control sampling risk. What does sufficient appropriate audit evidence refer to? Multiple Choice questions: Instructions: Encircle the letter of the best answer. Subject matter includes the definiton of auditing, the concept of materiality, evidence, substantive tests, audit documentation, internal control, reasonable assurance, information technology, personal computers, attribute sampling application, and deviation. QUESTION TWO. Which of the following internal control measures would be most likely to detect this error in a timely and efficient manner? d) Audit by independent auditor to improve internal affairs. Follow safety procedures, clean room procedures, and all other required procedures. These quiz objective questions are helpful for competitive exams. Options For Youth English 9/10 Diagnostic, "Clean Sweep" Reading Comprehension And Vocabulary Quiz. What is audit evidence? a) A census. Quiz. Answer the following questions and then press 'Submit' to get your score. Downloads. QUESTION THREE. We provide all important questions and answers from chapter Auditing. Correct. Once you have answered the questions, click on 'Submit Answers for Grading' to get your results. b. representative sampling. Which of the following audit procedures is best for identifying unrecorded trade accounts payable? AA Revision Test.

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