Chap 15 Audit Sampling

Question 1

Effect of the performance of audit procedures on statistical vs. nonstatistical sampling

Answer 1

Audit procedures on the sample item will not vary as a result of using either statistical or nonstatistical sampling.

Question 2

Which of the following is the risk that audit tests will not uncover existing exceptions in a sample?

Answer 2

Non sampling risk

Question 3

Which of the following is the risk that an auditor will reach an incorrect conclusion because a sample is
not representative of the population?

Answer 3

Sampling risk

Question 4

Sampling risk may be controlled by:

Answer 4

Adjusting the sample size

Question 5

Cause of Non Sampling Risk

Answer 5

The use of inappropriate audit procedures

Question 6

Cause of Sampling Risk

Answer 6

testing

Question 7

How to reduce sampling risk

Answer 7

• Designing the sampling process

- Designing the sample selection

Question 8

How to reduce nonsampling risk

Answer 8

proper supervision and instruction of the audit team