CPA Audit Review Module 7

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Joens1313
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292618
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CPA Audit Review Module 7
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2015-01-08 00:00:17
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CPA Audit Review Module
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CPA Audit Review Module 7
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  1. Basic to audit sampling is _____________________, the risk that the auditors conclusion based on the sample may be different from the conclusion if the entire population were subject to the same audit procedure.
    sampling risk
  2. What is sampling risk?
    sampling risk is the risk that the auditors conclusion based on the sample may be different from the conclusion if the entire population were subject to the same audit procedure.
  3. sampling risk is............._____,
    the risk that the auditors conclusion based on the sample may be different from the conclusion if the entire population were subject to the same audit procedure.
  4. What do both non-statistical and statistical sampling provide or involve?
    Both involve judgment in planning, executing the sampling plan, and evaluating the results of the sample.

    Both can provide sufficient appropriate audit evidence.
  5. Statistical sampling helps the auditor to......
    Design an effient sample

    Measure the sufficiency of the audit evidence obtained

    Evaluate the sample results (The auditor can objectively quantify sampling risk to limit it to a level considered acceptable)
  6. What is the difference between statistical sampling and non-statistical sampling?
    Statistical sampling provides the following that non-statistical does not provide.......

    Design an effient sample

    Measure the sufficiency of the audit evidence obtained

    Evaluate the sample results (The auditor can objectively quantify sampling risk to limit it to a level considered acceptable)
  7. ______________ is a combination of the risk that a material misstatement will occur and the risk that it will not be detected by the auditor
    Audit Risk
  8. What is audit risk?
    Audit Risk is a combination of the risk that a material misstatement will occur and the risk that it will not be detected by the auditor
  9. What are the 3 factors of audit risk?
    • Inherent Risk
    • Control Risk
    • Detection Risk
  10. What are these 3 factors?

    Inherent Risk
    Control Risk
    Detection Risk
    They all make up audit risk.
  11. _______________________includes all aspects of audit risk that are not due to sampling.
    non sampling risk
  12. What kind of risk is this an example of?

    The failure to select appropriate audit procedures
    This is a non sampling risk
  13. What are some examples of non sampling risk
    The failure to select appropriate audit procedures

    The failure to recognize misstatements in documents examined

    Misinterpreting the results of audit tests
  14. What kind of risk is this an example of?

    Misinterpreting the results of audit tests
    This is a non sampling risk
  15. ___________________________ include the risk of incorrect rejection and the risk of incorrect acceptance.
    Substantive test sampling risks
  16. What is Substantive test sampling risks
    Substantive test sampling risks include the risk of incorrect rejection and the risk of incorrect acceptance.
  17. ______________________ are used to obtain evidence about the validity and propriety of the accounting treatment of transactions and balances
    Substantive test
  18. What are substantive test used for?
    Substantive test are used to obtain evidence about the validity and propriety of the accounting treatment of transactions and balances
  19. What are the types of statistical sampling plans?
    Attributes sampling

    Variables sampling
  20. What type of plans are attributes sampling and variables sampling
    statistical sampling plans
  21. Attributes sampling reaches a conclusion in terms of a rate of occurrence
    Attributes sampling
  22. What is Attributes sampling used for?
    Attributes sampling reaches a conclusion in terms of a rate of occurrence
  23. Variables sampling reaches a conclusion in dollar amounts or units
    Variables sampling
  24. What is Variables sampling used for?
    Variables sampling reaches a conclusion in dollar amounts or units
  25. Attributes sampling is used in what kind of testing?
    controls testing
  26. What kind of sampling is used in control testing
    Attributes sampling
  27. Variables sampling is using in what kind of testing
    Substantive testing
  28. What kind of sampling is used in substantive testing
    Variables sampling
  29. What are the sub-types of variable sampling
    Probability proportional to size sampling

    Classical variables sampling techniques
  30. What sub-sampling types are Probability proportional to size sampling and Classical variables sampling techniques
    They are sub types of Variable sampling.

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