Question
QUESTION 1 Precision is a statistical measure of the maximum likely difference between the sample estimate and the true but unknown population total and is
QUESTION 1
Precision is a statistical measure of the maximum likely difference between the sample estimate and the true but unknown population total and is directly related to
| Reliability of evidence | |
| Relative risk | |
| Confidence level | |
| Cost benefit analysis |
QUESTION 2
An account balance is $300,000 and there are 25 items in the account, six of which have balances that equal or exceed $15,000. The auditor plans to use a monetary-unit sampling plan with systematic sample selection. To ensure that all accounts with balances of at least $15,000 are selected, the sampling interval should be
| 6 | |
| 20 | |
| 12,000 | |
| 15,000 |
QUESTION 3
In a monetary unit sample with a sampling interval of $5,000, an auditor discovers that a selected account receivable with a recorded amount of $10,000 has an audit amount of $8,000. If this were the only error discovered by the auditor, the projected misstatement for this sample would be
| $5,000 | |
| $4,000 | |
| $2,000 | |
| $1,000 |
QUESTION 4
. Monetary-unit sampling should not be used if
| The population includes several large items | |
| The auditor expects overstatement errors | |
| Many items in the account are expected to have errors | |
| No items in the account are expected to have errors |
QUESTION 5
In monetary-unit sampling, population size is
| The dollar balance in an account | |
| The number of items in an account | |
| Unrelated to sample size | |
| Included in the denominator of the formula to determine sample size |
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