EBK AUDITING & ASSURANCE SERVICES: A SY
10th Edition
ISBN: 9781259293245
Author: Jr
Publisher: MCGRAW HILL BOOK COMPANY
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Question
Chapter 9, Problem 9.7RQ
To determine
Concept Introduction:
Sampling is the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their
Sampling can be statistical or non statistical.
To indicate: the effect of the desired confidence level, tolerable misstatement, and expected misstatement on the
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What factors are considered in determining the sample size in a nonstatistical samplingapplication?
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Chapter 9 Solutions
EBK AUDITING & ASSURANCE SERVICES: A SY
Ch. 9 - Prob. 9.1RQCh. 9 - Prob. 9.2RQCh. 9 - Prob. 9.3RQCh. 9 - Prob. 9.4RQCh. 9 - Prob. 9.5RQCh. 9 - Prob. 9.6RQCh. 9 - Prob. 9.7RQCh. 9 - Prob. 9.8RQCh. 9 - Prob. 9.9RQCh. 9 - Prob. 9.10RQ
Ch. 9 - Prob. 9.11MCQCh. 9 - Prob. 9.12MCQCh. 9 - Prob. 9.13MCQCh. 9 - Prob. 9.14MCQCh. 9 - Prob. 9.15MCQCh. 9 - Prob. 9.16MCQCh. 9 - Prob. 9.17MCQCh. 9 - Prob. 9.18MCQCh. 9 - Prob. 9.19MCQCh. 9 - Prob. 9.20MCQCh. 9 - Prob. 9.21PCh. 9 - Prob. 9.22PCh. 9 - Prob. 9.23PCh. 9 - Prob. 9.24PCh. 9 - Prob. 9.25PCh. 9 - Prob. 9.26P
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Similar questions
- A principal advantage of statistical methods of attribute sampling over nonstatistical methods is that they provide a scientific basis for planning the A. risk of overreliance B. tolerable rate C. expected population deviation rate D. Sample sizearrow_forwardWhat factors affect sample size?arrow_forwardThe risk that the decision made based on the sample will differ from the decision madebased on the entire population is referred to asa. Audit risk.b. Examination risk.c. Sampling risk.d. Nonsampling riskarrow_forward
- Which of the following factors used to determine sample size is normally based on the extentto which the audit team expects to rely on the internal control being examined?a. Allowance for sampling risk.b. Expected population deviation rate.c. Sample rate of deviation.d. Tolerable rate of deviationarrow_forwardHow is sampling risk controlled?arrow_forwardSubject: Auditing & Assurance Principles Define the following factors that affect the determination of sample size: a) Acceptable sampling risk b) Tolerable deviation rate c) Expected deviation rate d) Tolerable misstatement e) Expected misstatement f) Variation in the populationarrow_forward
- What type of sampling are Control Tests?arrow_forwardWhat is the formula for Audit Sampling?arrow_forwardFor both tests of controls and substantive tests of details, non-sampling risk can be reduced by increasing sample size, while sampling risk can be reduced by proper engagement planning supervision and review. TRUE OR FALSE? WHY?arrow_forward
- Which of the following components is not used in determining the upper limit on misstatements?a. Basic allowance for sampling risk.b. Incremental allowance for sampling risk.c. Projected misstatement.d. Tolerable misstatementarrow_forwardWhich of the following statistical techniques are used to test controls? Mean-per-unit sampling. Attribute sampling. Difference estimation. Ratio estimation.arrow_forwardIn determining the sample size for a test of controls, an auditor should consider the expected deviation rate, desired confidence level, and the * O Nature and cause of deviations O Population size O Risk of incorrect acceptance O Tolerable deviation ratearrow_forward
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