Deck 2: Auditing and Sampling Techniques

ملء الشاشة (f)
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سؤال
The point where the total value of errors in an account becomes unacceptable to audit is called

A)Unacceptable level
B)Materiality level
C)Qualifiable Level
D)None of these
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سؤال
The materiality thresholds depend on the ____ of accounts and their _____.

A)Basis, Sensitivity
B)Sensitivity, relativity
C)Basis, accountablity
D)Basis, Value
سؤال
For accounts prepared on cash basis, in respect of gross receipts/expenditure, materiality percentage would be

A)For very sensitive accounts - 1 %, sensitive accounts - 1% to 2% and non sensitive accounts - 5%
B)For very sensitive accounts - 1/2 %, sensitive accounts - 1/2% to 2% and non sensitive accounts - 2%
C)For very sensitive accounts - 2 %, sensitive accounts - 5% and non sensitive accounts - 8%
D)none of these
سؤال
Planning materiality may be taken at a lower figure than reporting materiality.
سؤال
Which of the following statements is true about Precision

A)It is a range of error in an account between MLE & materiality
B)It is a range of error in an account between MLE & AMLE
C)It is a range of error in an account between Materiality & AMLE
D)None of these
سؤال
AMLE in the context of likely errors is used in this stage of audit

A)Reporting
B)Evaluation of results
C)Planning
D)Field Audit
سؤال
The formula for calculating precision is

A)(Materiality - Range of error possible) x AMLE
B)(Materiality - AMLE) x Range of error possible
C)(AMLE - Range of error possible) x Materiality
D)None of these
سؤال
There is a direct relationship between materiality level and the level of audit risk
سؤال
The three components of Audit Risk as per the risk model are

A)Inherent Risk, Control Risk, Mitigation Risk
B)Inherent Risk, Control Risk, Litigation Risk
C)Inherent Risk, Control Risk, Detection Risk
D)None of these
سؤال
If the desired overall assurance from audit is 95%, the inherent risk is 40% and the control risk is 50%, what would be the desired assurance from substantive tests

A)90%
B)95%
C)99%
D)75%
سؤال
what are the audit procedures commonly used to obtain audit assurance?

A)Analytical Procedures
B)Systems Based Audit
C)Direct Substantive Testing
D)All of the above
سؤال
Which of the following is not a part of analytical procedures?

A)System Analysis
B)Economic Analysis
C)Regression Analysis
D)Predictive Analysis
سؤال
When you are finding out the inventory-turnover ratio, you are doing

A)Comparison across components
B)Comparison involving a single component
C)Regression analysis
D)Economic analysis
سؤال
This is a technique that creates an equation to reveal how one variable is related to one or more other variables.

A)Comparison across components
B)Predictive Analysis
C)Regression analysis
D)Economic analysis
سؤال
Which of the audit procedures is a form of inductive reasoning where the reasonableness of the aggregate results is inferred from the evidence of reliability of the individual details that are tested?

A)Analytical Procedures
B)Systems Based Audit
C)Direct Substantive Testing
D)All of the above
سؤال
Which kind of audit sampling is generally used for testing controls?

A)Attribute Sampling
B)Random Sampling
C)Monetary Unit Sampling
D)Stratified Sampling
سؤال
Which method of sampling is expected to produce representative samples?

A)Block Selection
B)Judgmental Sampling
C)Random Sampling
D)Convenient Sampling
سؤال
Which method of sampling is not expected to produce representative samples?

A)Block Selection
B)Random Sampling
C)Systematic Sampling
D)Monetary Unit Sampling
سؤال
A pre-condition for any statistical sampling is the availability of a _______

A)Sampling unit
B)sampling frame
C)Sampling structure
D)All of the above
سؤال
Population is divided into groups, each being fairly homogenous with respect to value and risk in this kind of sampling

A)Block Selection
B)Random Sampling
C)Stratified Sampling
D)Monetary Unit Sampling
سؤال
Sampling interval is calculated in this kind of sampling

A)Simple Random Sampling
B)Systematic Sampling
C)Stratified Sampling
D)All of the above
سؤال
This method of sampling is also called probability proportionate to size (PPS) sampling

A)Block Selection
B)Random Sampling
C)Stratified Sampling
D)Monetary Unit Sampling
سؤال
Extrapolation of sampling results to the population is possible in the case of Judgmental Sampling.
سؤال
Risk assessment is primarily a part of which of these stages in the audit process?

A)Planning
B)Excecution
C)Reporting
D)Follow up
سؤال
Reflecting all the transactions relating to the period of the accounts without regard to the actual date of payment or receipt is also called

A)Accrual system accounting
B)Mercantile system of accounting
C)Both A & B
D)None of these
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ملء الشاشة (f)
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Deck 2: Auditing and Sampling Techniques
1
The point where the total value of errors in an account becomes unacceptable to audit is called

A)Unacceptable level
B)Materiality level
C)Qualifiable Level
D)None of these
Materiality level
2
The materiality thresholds depend on the ____ of accounts and their _____.

A)Basis, Sensitivity
B)Sensitivity, relativity
C)Basis, accountablity
D)Basis, Value
Basis, Sensitivity
3
For accounts prepared on cash basis, in respect of gross receipts/expenditure, materiality percentage would be

A)For very sensitive accounts - 1 %, sensitive accounts - 1% to 2% and non sensitive accounts - 5%
B)For very sensitive accounts - 1/2 %, sensitive accounts - 1/2% to 2% and non sensitive accounts - 2%
C)For very sensitive accounts - 2 %, sensitive accounts - 5% and non sensitive accounts - 8%
D)none of these
For very sensitive accounts - 1/2 %, sensitive accounts - 1/2% to 2% and non sensitive accounts - 2%
4
Planning materiality may be taken at a lower figure than reporting materiality.
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5
Which of the following statements is true about Precision

A)It is a range of error in an account between MLE & materiality
B)It is a range of error in an account between MLE & AMLE
C)It is a range of error in an account between Materiality & AMLE
D)None of these
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6
AMLE in the context of likely errors is used in this stage of audit

A)Reporting
B)Evaluation of results
C)Planning
D)Field Audit
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7
The formula for calculating precision is

A)(Materiality - Range of error possible) x AMLE
B)(Materiality - AMLE) x Range of error possible
C)(AMLE - Range of error possible) x Materiality
D)None of these
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8
There is a direct relationship between materiality level and the level of audit risk
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9
The three components of Audit Risk as per the risk model are

A)Inherent Risk, Control Risk, Mitigation Risk
B)Inherent Risk, Control Risk, Litigation Risk
C)Inherent Risk, Control Risk, Detection Risk
D)None of these
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10
If the desired overall assurance from audit is 95%, the inherent risk is 40% and the control risk is 50%, what would be the desired assurance from substantive tests

A)90%
B)95%
C)99%
D)75%
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11
what are the audit procedures commonly used to obtain audit assurance?

A)Analytical Procedures
B)Systems Based Audit
C)Direct Substantive Testing
D)All of the above
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12
Which of the following is not a part of analytical procedures?

A)System Analysis
B)Economic Analysis
C)Regression Analysis
D)Predictive Analysis
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13
When you are finding out the inventory-turnover ratio, you are doing

A)Comparison across components
B)Comparison involving a single component
C)Regression analysis
D)Economic analysis
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14
This is a technique that creates an equation to reveal how one variable is related to one or more other variables.

A)Comparison across components
B)Predictive Analysis
C)Regression analysis
D)Economic analysis
فتح الحزمة
افتح القفل للوصول البطاقات البالغ عددها 25 في هذه المجموعة.
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15
Which of the audit procedures is a form of inductive reasoning where the reasonableness of the aggregate results is inferred from the evidence of reliability of the individual details that are tested?

A)Analytical Procedures
B)Systems Based Audit
C)Direct Substantive Testing
D)All of the above
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افتح القفل للوصول البطاقات البالغ عددها 25 في هذه المجموعة.
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16
Which kind of audit sampling is generally used for testing controls?

A)Attribute Sampling
B)Random Sampling
C)Monetary Unit Sampling
D)Stratified Sampling
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17
Which method of sampling is expected to produce representative samples?

A)Block Selection
B)Judgmental Sampling
C)Random Sampling
D)Convenient Sampling
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18
Which method of sampling is not expected to produce representative samples?

A)Block Selection
B)Random Sampling
C)Systematic Sampling
D)Monetary Unit Sampling
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19
A pre-condition for any statistical sampling is the availability of a _______

A)Sampling unit
B)sampling frame
C)Sampling structure
D)All of the above
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20
Population is divided into groups, each being fairly homogenous with respect to value and risk in this kind of sampling

A)Block Selection
B)Random Sampling
C)Stratified Sampling
D)Monetary Unit Sampling
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21
Sampling interval is calculated in this kind of sampling

A)Simple Random Sampling
B)Systematic Sampling
C)Stratified Sampling
D)All of the above
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22
This method of sampling is also called probability proportionate to size (PPS) sampling

A)Block Selection
B)Random Sampling
C)Stratified Sampling
D)Monetary Unit Sampling
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23
Extrapolation of sampling results to the population is possible in the case of Judgmental Sampling.
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24
Risk assessment is primarily a part of which of these stages in the audit process?

A)Planning
B)Excecution
C)Reporting
D)Follow up
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25
Reflecting all the transactions relating to the period of the accounts without regard to the actual date of payment or receipt is also called

A)Accrual system accounting
B)Mercantile system of accounting
C)Both A & B
D)None of these
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افتح القفل للوصول البطاقات البالغ عددها 25 في هذه المجموعة.