Ch. 16 - Sampling

Question 1

Three ways to select items for testing:

Answer 1

1. selecting all items in the population
2. selecting specific items
3. audit sampling

Question 2

Selecting all items is appropriate if:

Answer 2

1. population includes few large items
2. There is significant risk
3. an information system makes it cost-effective

Question 3

Selecting specific items includes:

Answer 3

1. Key items
2. all items over a certain amount
3. items to obtain information

Question 4

Sampling risk:

Answer 4

the risk that the practitioners conclusion may be different from testing a sample instead of the population

Question 5

An error in a test of controls is called a:

Answer 5

deviation

Question 6

An error in tests of details is called a:

Answer 6

misstatement

Question 7

Sample consideration - representative

Answer 7

is the sample indicative of the entire population

Question 8

sample consideration - complete

Answer 8

are all transactions included

Question 9

Stratification options:

Answer 9

1. monetary value
2. identifying characteristics
3. representative items

Question 10

Sampling Approach - two options

Answer 10

1. statistical

2. non-statistical

Question 11

Sample Selection Techniques

Answer 11

1. Random
2. Systematic
3. Haphazard
4. Monetary Unit

Question 12

Random Sampling

Answer 12

samples are selected randomly

Question 13

Systematic Sampling

Answer 13

population / samples required

Question 14

Haphazard Sampling

Answer 14

No structured technique, but avoiding bias or predictability