1. If the tolerable exception rate increases, what how does this affect the sample size if you are using statistical sampling.
2/ You are testing controls around revenues, which are booked using the IT system. The IT system does not properly work, and people do not understand how to follow control procedures using this system, so they don’t do it. Are you going to use the substantive approach or the combined approach ? Explain
3/ You selected a sample of recorded payroll payments to see whether or not they have supporting documentation. What is the main assertion you tested with this procedure (list one)? Was this an analytical procedure or a test of details?
4/What is the best way to measure sampling risk if you are using directed sample selection?
5/ You are testing to see whether the transactions near the year end were booked in the proper period. You selected the last 5 transactions in the current year an the first five in the next year. What type of sampling is this?