Chapter 5

Question 1

Population size and variability effect on audit sample size

Answer 1

higher for both equals greater sample size

Question 2

Audit specifications as to a Sample (Specified tolerable misstatement and Specified Risk of Incorrect Acceptance)

Answer 2

tbd

Question 3

total projected misstatement

Answer 3

Actual net misstatement sampled / percentage of population sampled

Question 4

statistical vs nonstatistical sampling

Answer 4

tbd

Question 5

sampling for test of controls vs test of details

Answer 5

tbd

Question 6

The allowance for sampling risk

Answer 6

the excess of upper deviation rate / sample deviation rate

Question 7

to evaluate statisitical sampling

Answer 7

Is sampling deviation rate plus allowance for sampling risk >,

Question 8

Four Management Rep Letter Categories

Answer 8

The representation letter typically includes information in four categories: financial statements; completeness; recognition, measurement, and disclosure; and subsequent events