ACC 403 Week 10 Quiz 8 - Part 2 Chapter 17

ACC 403 Week 10 Quiz 8 - Part 2 Chapter 17

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1.       The client's trial balance has a balance of $410,000 for merchandise inventory. As the auditor you are willing to accept a balance that is within $20,000 of either side of the recorded balance. You compute a 95% confidence interval of $395,000 to $425,000. You could therefore:

2.       If the population is not considered acceptable, one step the auditor is likely to take is to:

3.       The auditors principal objective when using a sample of tests of details of balances is whether the:

4.       When selecting a sample size for substantive tests of balances which factor, other factors being equal, would result in a larger sample?

5.       The final step in the evaluation of the audit results is the decision to:

6.       Monetary unit sampling is not particularly effective at detecting:

7.       In monetary unit sampling, the relationship between tolerable misstatement size and required sample size is:

8.       If no exceptions were found in the substantive tests of transactions:

9.       When the sample selection is done using probability proportional to size sample selection (PPS):

10.   When using monetary unit sampling, the recorded dollar population is a definition of all the items in the:

11.   When defining the population and the sampling unit for tests of details of balances:

12.   If an auditor concludes that internal controls are likely to be effective, the preliminary assessment of control risk can be reduced, leading to which of the following impacts on the acceptable risk of incorrect acceptance?

13.   If acceptable audit risk is increased, acceptable risk of incorrect acceptance should be:

14.   The word below that best explains the relationship between required sample size and the acceptable risk of incorrect acceptance is:

15.   The risk the auditor is willing to take of accepting a balance as correct when the true misstatement in the balance under audit is greater than the tolerable misstatement is:

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