Audit samplingis the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their audit procedures. Sampling can be statistical or non statistical. When the auditor is performed test of control and substantive tests they used the statistical sampling technique that test the items less than 100% in the population with some characteristics and give the appropriate sampling risk. To explain: The auditor’s justification for accepting the uncertainties that are inherent in the sampling process.

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Answer 1

Question

Chapter 8, Problem 8.21P

a.

To determine

Concept Introduction:

Audit samplingis the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their audit procedures. Sampling can be statistical or non statistical. When the auditor is performed test of control and substantive tests they used the statistical sampling technique that test the items less than 100% in the population with some characteristics and give the appropriate sampling risk.

To explain: The auditor’s justification for accepting the uncertainties that are inherent in the sampling process.

b.

To determine

Concept Introduction:

Audit sampling: sampling is the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their audit procedures. Sampling can be statistical or non statistical. When the auditor is performed test of control and substantive tests they used the statistical sampling technique that test the items less than 100% in the population with some characteristics and give the appropriate sampling risk.

To discuss: The uncertainties that express the concept of audit risk.

c.

To determine

Concept Introduction:

Audit sampling: sampling is the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their audit procedures. Sampling can be statistical or non statistical. When the auditor is performed test of control and substantive tests they used the statistical sampling technique that test the items less than 100% in the population with some characteristics and give the appropriate sampling risk.

To discuss: The nature of sampling risk and non-sampling risk include the effect of sampling risk on test of control

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On Andit sampling involves applying an audit procedure to less than 100 percent of the population for the purpose of evaluating some characteristic of the population. When an auditor uses sampling. an element of uncertainty enters into the auditor's conclusions. Required: a. Explain the auditor's justification for accepting the uncertainties that are inherent in the sampling process. b. Discuss the uncertainties that collectively embody the concept of audit risk. c. Discuss the nature of sampling risk and nonsampling risk. Include the effect of sampling risk on tests of controls in terms of Type I and Type II errors. Accessibility: Investigate Styles

TRUE OR FALSE When sampling is used by an auditor, an element of uncertainty is present in the auditor's conclusion. When evaluating the results of specific items selected for testing, its effects must be projected to the whole population. In performing external confirmations, the management prepares the requests and receives and replies for communication to the auditor. As the use of going concern assumption is always relevant un audit, the auditor shall evaluate whether uncertainty exists as the company's ability to continue as going concern. Adverse key financial ratios and negative operating cash flows are some events that may cast doubt about the going concern of a company. In searching for unrecorded liabilities, the population of audit interest is the schedule of accounts payable at period end. Audit sampling refers to the application of audit procedures to less than 100% of the items in an account balance or class of transactions for the purpose of…

In audit sampling applications, sampling risk isa. A characteristic of statistical sampling applications but not of nonstatistical applications.b. The probability that the audit team will fail to recognize erroneous accounting in the client’sdocumentation.c. The probability that accounting misstatements will arise in transactions and enter theaccounting system.d. The probability that an audit team’s conclusion based on a sample might be differentfrom the conclusion based on an audit of the entire population.

Answer 2

Question

Chapter 8, Problem 8.21P

a.

To determine

Concept Introduction:

Audit samplingis the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their audit procedures. Sampling can be statistical or non statistical. When the auditor is performed test of control and substantive tests they used the statistical sampling technique that test the items less than 100% in the population with some characteristics and give the appropriate sampling risk.

To explain: The auditor’s justification for accepting the uncertainties that are inherent in the sampling process.

b.

To determine

Concept Introduction:

Audit sampling: sampling is the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their audit procedures. Sampling can be statistical or non statistical. When the auditor is performed test of control and substantive tests they used the statistical sampling technique that test the items less than 100% in the population with some characteristics and give the appropriate sampling risk.

To discuss: The uncertainties that express the concept of audit risk.

c.

To determine

Concept Introduction:

Audit sampling: sampling is the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their audit procedures. Sampling can be statistical or non statistical. When the auditor is performed test of control and substantive tests they used the statistical sampling technique that test the items less than 100% in the population with some characteristics and give the appropriate sampling risk.

To discuss: The nature of sampling risk and non-sampling risk include the effect of sampling risk on test of control

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Answer 3

Question

Chapter 8, Problem 8.21P

a.

To determine

Concept Introduction:

Audit samplingis the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their audit procedures. Sampling can be statistical or non statistical. When the auditor is performed test of control and substantive tests they used the statistical sampling technique that test the items less than 100% in the population with some characteristics and give the appropriate sampling risk.

To explain: The auditor’s justification for accepting the uncertainties that are inherent in the sampling process.

b.

To determine

Concept Introduction:

Audit sampling: sampling is the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their audit procedures. Sampling can be statistical or non statistical. When the auditor is performed test of control and substantive tests they used the statistical sampling technique that test the items less than 100% in the population with some characteristics and give the appropriate sampling risk.

To discuss: The uncertainties that express the concept of audit risk.

c.

To determine

Concept Introduction:

Audit sampling: sampling is the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their audit procedures. Sampling can be statistical or non statistical. When the auditor is performed test of control and substantive tests they used the statistical sampling technique that test the items less than 100% in the population with some characteristics and give the appropriate sampling risk.

To discuss: The nature of sampling risk and non-sampling risk include the effect of sampling risk on test of control

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Answer 4

Question

Chapter 8, Problem 8.21P

a.

To determine

Concept Introduction:

Audit samplingis the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their audit procedures. Sampling can be statistical or non statistical. When the auditor is performed test of control and substantive tests they used the statistical sampling technique that test the items less than 100% in the population with some characteristics and give the appropriate sampling risk.

To explain: The auditor’s justification for accepting the uncertainties that are inherent in the sampling process.

b.

To determine

Concept Introduction:

Audit sampling: sampling is the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their audit procedures. Sampling can be statistical or non statistical. When the auditor is performed test of control and substantive tests they used the statistical sampling technique that test the items less than 100% in the population with some characteristics and give the appropriate sampling risk.

To discuss: The uncertainties that express the concept of audit risk.

c.

To determine

Concept Introduction:

Audit sampling: sampling is the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their audit procedures. Sampling can be statistical or non statistical. When the auditor is performed test of control and substantive tests they used the statistical sampling technique that test the items less than 100% in the population with some characteristics and give the appropriate sampling risk.

To discuss: The nature of sampling risk and non-sampling risk include the effect of sampling risk on test of control

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 8.21P

a.

To determine

Concept Introduction:

Audit samplingis the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their audit procedures. Sampling can be statistical or non statistical. When the auditor is performed test of control and substantive tests they used the statistical sampling technique that test the items less than 100% in the population with some characteristics and give the appropriate sampling risk.

To explain: The auditor’s justification for accepting the uncertainties that are inherent in the sampling process.

b.

To determine

Concept Introduction:

Audit sampling: sampling is the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their audit procedures. Sampling can be statistical or non statistical. When the auditor is performed test of control and substantive tests they used the statistical sampling technique that test the items less than 100% in the population with some characteristics and give the appropriate sampling risk.

To discuss: The uncertainties that express the concept of audit risk.

c.

To determine

Concept Introduction:

Audit sampling: sampling is the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their audit procedures. Sampling can be statistical or non statistical. When the auditor is performed test of control and substantive tests they used the statistical sampling technique that test the items less than 100% in the population with some characteristics and give the appropriate sampling risk.

To discuss: The nature of sampling risk and non-sampling risk include the effect of sampling risk on test of control

Answer 6

Chapter 8, Problem 8.21P

a.

To determine

Concept Introduction:

Audit samplingis the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their audit procedures. Sampling can be statistical or non statistical. When the auditor is performed test of control and substantive tests they used the statistical sampling technique that test the items less than 100% in the population with some characteristics and give the appropriate sampling risk.

To explain: The auditor’s justification for accepting the uncertainties that are inherent in the sampling process.

Answer 7

Chapter 8, Problem 8.21P

a.

To determine

Concept Introduction:

Audit samplingis the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their audit procedures. Sampling can be statistical or non statistical. When the auditor is performed test of control and substantive tests they used the statistical sampling technique that test the items less than 100% in the population with some characteristics and give the appropriate sampling risk.

To explain: The auditor’s justification for accepting the uncertainties that are inherent in the sampling process.

Answer 8

b.

To determine

Concept Introduction:

Audit sampling: sampling is the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their audit procedures. Sampling can be statistical or non statistical. When the auditor is performed test of control and substantive tests they used the statistical sampling technique that test the items less than 100% in the population with some characteristics and give the appropriate sampling risk.

To discuss: The uncertainties that express the concept of audit risk.

Answer 9

b.

To determine

Concept Introduction:

Audit sampling: sampling is the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their audit procedures. Sampling can be statistical or non statistical. When the auditor is performed test of control and substantive tests they used the statistical sampling technique that test the items less than 100% in the population with some characteristics and give the appropriate sampling risk.

To discuss: The uncertainties that express the concept of audit risk.

Answer 10

c.

To determine

Concept Introduction:

Audit sampling: sampling is the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their audit procedures. Sampling can be statistical or non statistical. When the auditor is performed test of control and substantive tests they used the statistical sampling technique that test the items less than 100% in the population with some characteristics and give the appropriate sampling risk.

To discuss: The nature of sampling risk and non-sampling risk include the effect of sampling risk on test of control

Answer 11

c.

To determine

Concept Introduction:

Audit sampling: sampling is the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their audit procedures. Sampling can be statistical or non statistical. When the auditor is performed test of control and substantive tests they used the statistical sampling technique that test the items less than 100% in the population with some characteristics and give the appropriate sampling risk.

To discuss: The nature of sampling risk and non-sampling risk include the effect of sampling risk on test of control

Answer 12

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Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 8 - Prob. 8.1RQ Ch. 8 - Prob. 8.2RQ Ch. 8 - Prob. 8.3RQ Ch. 8 - Prob. 8.4RQ Ch. 8 - Prob. 8.5RQ Ch. 8 - Prob. 8.6RQ Ch. 8 - Prob. 8.7RQ Ch. 8 - Prob. 8.8RQ Ch. 8 - Prob. 8.9RQ Ch. 8 - Prob. 8.10RQ

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