When the auditor uses monetary unit statistical sampling to examine the totaldollar value of invoices, each invoice(1) has an equal probability of being selected.(2) can be represented by no more than one monetary unit.(3) has an unknown probability of being selected.(4) has a probability proportional to its dollar value of being selected.

Q: Q. If the auditor traces a sample of receiving reports to the inventory records, the auditor is…

A: The objective of the question is to determine whether the statement is true or false. The statement…

Q: The auditor attempts to correct for the risk of under-auditing (ineffectiveness) and over-auditing…

A: Auditing is the process of examining financial statements, records, and other financial information…

Q: What is the risk caused by the sample taken by the Auditor that does not describe the…

A: Audit sampling is the audit procedure in which sample is selected to test the whole data or…

Q: In calculating the projected misstatement in monetary unit sampling, accounts with a book value…

A: The objective of the question is to understand how the projected misstatement is calculated in…

Q: Standard deviation can be viewed as a measure of systematic and unsystematic risk combined True…

A: Standard deviation is the total risk of an asset or portfolio.

Q: One of your audit planning procedures was the ratio analysis.  You noted that the debt to assets…

A: Ratios are calculated to compare two items of the company in the financial statement.

Q: Monetary Unit and Classical Variables Sampling. Indicate whether each of the following…

A: Definition:

Q: In auditing accounts receivable, the negative form of confirmations request is used when A. Response…

A: Auditing:   Auditing refers to an independent examination of financial information of any…

Q: s1: The only way to know with certainty whether a sample Is representative is to subsequently audit…

A: Option (c) is the correct answer i.e. s1 and s2 are true

Q: In performing tests of controls over authorization of bad debt write-offs, which of the following…

A: The question has asked about the audit sampling.   Audit sampling: Audit sampling refers to the…

Q: STATEMENT 1: In an audit sampling application, detection risk arises from the uncertainties of…

A: Audit sampling is a process or procedure in which a sample of items are selected from the total…

Q: STATEMENT 1: All auditing procedures involves audit sampling. STATEMENT 2: Sufficiency or adequacy…

A: Answer: Concept: Audit sampling is done in audit so that maximum testing are covered.

Q: Attribute sampling enables the auditor to directly assess whether a rule is operating successfully…

A: Monetary unit sampling is a statistical sampling method used in auditing to test the accuracy of…

Q: The audit team will choose to reduce the reliance on controls if the _____ is greater than the…

A: The audit team will choose to reduce the reliance on controls if the upper limit rate of deviation…

Q: An essential step in difference estimation is the comparisonof each computed confidence limit with…

A: Tolerable misstatement indicates that part of overall materiality which is allocated to each of the…

Q: Monetary Unit Sampling. Georgie Costanza, CPA, is auditing the accounts receivable of Vandalay…

A: a) Monetary Unit Sampling is one of the two statistical approaches for variable sampling. If C is…

Q: aterial misstatement exists when it does not exist     the risk that an auditor incorrectly…

A: Risk of incorrect rejection is defined as   the risk that the auditor concludes that a…

Q: The more assurance the auditor wants, _______.     A. the less representative a sample should be…

A: Auditing means the independent checking of company operation by outsider. Auditor is a qualified and…

Q: S1: Stratification in audit sampling enables the auditor to direct his efforts towards the items he…

A: solution concept stratification means method of dividing the data into different groups so that the…

Q: A number of factors influences the sample size for a substantive test of details of an account…

A: Substantive testing represents that the auditor is required to gather the information and identify…

Q: In audit sampling applications, sampling risk isa. A characteristic of statistical sampling…

A: Answer:   Option d

Q: The two types of sampling risks auditors face include the risk of incorrect acceptance and the risk…

A: The two types of sampling risk can be the risk of incorrect acceptance other risk of incorrect…

Q: uprimarily on the auditor's ossessment of the relative costs and benefits. STATEMENT 2: The choice…

A: Answer: Concept: Audit sampling is very important part of audit procedures