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

1 points

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

1 points

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

1 points

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